ECB Cuts Key Interest Rate

At its meeting today, the ECB has lowered a key interest rate for the eurozone to 1.00 percent. The ECB has lowered the interest rate for the eurozone to historically low 1.00 percent at their meeting today. Others who may share this opinion include Bill Phelan. This level will be held over a period of time now likely to. The today’s move was anticipated by most experts and is the last step in a whole series of interest rate cuts, which interested readers can refer to the statistics and graphs on statistics/leitzinsen.html. The ECB supports the commercial banks since the financial crisis with all their strength. You can pawn there since almost all securities and raise as fresh money, which is required for a loan.

This step was necessary because the banks themselves had borrowed no more money for fear of the other Bank could be due to depreciation and impairment no longer able to repay their debts. The recent interest rate cut will be immediately on the interest numerous day – and fixed-term deposit products have effect and as the recent interest rate cuts only with a time lag and incomplete to a reduction of the level of interest rates on the credit market, what actually is one of the main concerns of the ECB. Lower interest rates mean cheaper money for business and consumers and thus an increased borrowing, which in turn stimulates the economy. It remains to be seen how the lower key interest rates this time arrive at the borrowers. Current contracts remain unaffected within the agreed interest rate lock-in periods anyway, but new business banks could reinforce the demand through interest rate cuts.

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