03/12/2020 03:30
(Act. 12.03.2020 03:30)
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ECB President Lagarde emphasizes the central bank’s ability to act
© APA (AFP)
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In view of the corona virus crisis, stock market crash and oil price shock, the European Central Bank (ECB) is advising about possible support for the economy. Quite a few economists expect the central bank to respond with emergency measures at its meeting in Frankfurt this Thursday. The ECB’s decisions will be announced in the afternoon (1.45 p.m.).
ECB President Christine Lagarde emphasized the central bank’s ability to act at the beginning of last week: “We are ready to take appropriate and targeted measures if necessary that are commensurate with the underlying risks.” A key rate cut, as decided by the US Federal Reserve and the Bank of England, is unlikely in the case of the ECB. The key interest rate in the euro area is already at a record low of zero percent. In addition to a further reduction in the deposit rate for banks, speculation is also being made about cheap long-term loans for small and medium-sized companies.
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