The European Central Bank responded to mounting market pressure and speculation of a rate cut this meeting, where the Governing Council voted to cut key interest rates last week by quarter basis point to a fresh record-low now at 0.5 percent.
The ECB's 23-member Governing Council voted on Thursday to slash the main refinancing rate from 0.75 percent to a new all-time low of 0.25 percent and the rate on the marginal lending facility by 50 basis points to 1.00%. The rate on the deposit facility will remain unchanged at 0.00%.
Growth risks remains to the downside, referring that the economy should start to recover in the second half of the year while the ECB will remain tracking data in the coming weeks, leaving the door opened in front of any possible action, ECB said in its monthly bulletin Thursday, echoing President Mario Draghi's statement following rate decision last week.
In regards to growth Draghi said that growth, The European Central Bank reported in the Monthly Bulletin that growth risks remains to the downside, referring that the economy should start to recover in the second half of the year while the ECB will remain tracking data in the coming weeks, leaving the door opened in front of any possible action.
Meanwhile, euro area inflation has declined more than expected, reflecting energy prices, yet inflation expectations remain firmly contained over the medium term and risks are broadly balance, Draghi said.
Draghi called on all governments in the European Union to support fiscal sustainability. Draghi added it is essential for governments to intensify the implementation of structural reforms at national level, and proceed with bank recapitalization where needed.
IMOH, Clement I.
+234 802 905 9344
+234 703 569 1707
No comments:
Post a Comment