Noted a deterioration of inflation expectations.
The leadership of the European Central Bank (ECB) meeting on Thursday, July 25, revised projections for interest rates and has asked his staff to prepare options for additional easing, thereby taking the course to reduce the cost of borrowing and the renewal of asset purchases in September, according to Reuters. Also the ECB kept its benchmark interest rate on loans to zero.
The ECB took this decision in view of the worsening inflation expectations in the Euro area and projected in the coming months by slower growth in consumer prices. In addition, the statistics indicate a weakening of economic growth in the second and third quarters 2019, underscores ECB President Mario Draghi. So the regulator is forced to stimulate the economy of the Eurozone broad monetary measures.
“The governing Council expects key ECB interest rates will remain at current or lower levels until at least the end of the first half of the year 2020 and in any case as long as necessary to ensure the continuation of the strong approximation of inflation to the benchmark in the medium term”, – reads the statement of the ECB.
However, Draghi noted some positive for the Eurozone economy factors: low unemployment and accelerating wage growth. In particular, he drew attention that the scope of services and construction are also showing good resilience in the face of the deteriorating economic situation. As the volume of lending in the corporate sector, said the head of the ECB, reports Interfax-Ukraine.
The management of the ECB at the end of the July meeting, left unchanged its key interest rates, including the rate on loans to 0% for margin loans of 0.25% on deposits to minus 0.4%.