The European Central Bank (ECB) unexpectedly cut interest rates to spur economic growth and stave off the threat of deflation.
The ECB's 24-member Governing Council reduced all three of its main interest rates by 10 basis points. The benchmark rate was lowered to 0.05 percent and the deposit rate is now minus 0.2 percent. The euro slid, as a reduction in the benchmark rate was predicted by just six of 57 economists in a Bloomberg News survey.
The rate cuts come three months after an historic package of stimulus measures, and two weeks after Draghi signaled he was ready to act again. Additional measures he could unveil later may include a purchase program for asset-backed securities (ABS) or a larger program of quantitative easing that risks dividing policy makers.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
