Send
Print
pixabay
The European Central Bank (ECB) has confirmed its intention to complete by the end of this year a controversial bond buyback, which is used to maintain an optimal level of inflation in the euro area at two percent. At a meeting of the ECB’s Board of Governors in Frankfurt am Main on Thursday, October 25, however, no formal decision was made to stop redemption of bonds - a measure that causes particularly strong criticism from Germany.
In October, the ECB cut the bond redemption amount in half to 15 billion euro per month. The Council of the European regulator made it clear that a sharp exit from the anti-crisis regime that had been in place for a number of years should not be expected: the base interest rate on loans was kept, as was predicted, at zero, the ECB deposit rate was left at minus 0.4 percent per annum, and the rate on margin loans - at the level of 0.25 percent.
The ECB management confirmed its intention to keep key rates unchanged at least until the end of the summer of 2019. "The Board of Governors expects the ECB's key interest rates to remain at the current level at least until the end of the summer of 2019 and, in any case, as long as there is a need to ensure the continued consistent approximation of inflation in the medium term to levels that are below 2 percent but close to them, "the regulator said in a statement.
Observers believe that the basic rates of the ECB can now be changed only after Mario Draghi resigns from his position of the bank chairman at the end of October 2019.
source: dw.de
In October, the ECB cut the bond redemption amount in half to 15 billion euro per month. The Council of the European regulator made it clear that a sharp exit from the anti-crisis regime that had been in place for a number of years should not be expected: the base interest rate on loans was kept, as was predicted, at zero, the ECB deposit rate was left at minus 0.4 percent per annum, and the rate on margin loans - at the level of 0.25 percent.
The ECB management confirmed its intention to keep key rates unchanged at least until the end of the summer of 2019. "The Board of Governors expects the ECB's key interest rates to remain at the current level at least until the end of the summer of 2019 and, in any case, as long as there is a need to ensure the continued consistent approximation of inflation in the medium term to levels that are below 2 percent but close to them, "the regulator said in a statement.
Observers believe that the basic rates of the ECB can now be changed only after Mario Draghi resigns from his position of the bank chairman at the end of October 2019.
source: dw.de
