European Central Bank cuts interest: Euro Rate now 1.5%
Mar 05, 2009 | Comments 0
The European Central Bank has today announced a cut in their interest rate, the Euro rate now stands at 1.5%. The Central Bank has predicted that this is the worst economic recession for Europe in 50 years. It seems that drastic times calls for drastic measures, but not as drastic as the one taken by the Bank of England, who have moved into quantitative easing.
Jean-Claude Trichet, ECB president has not ruled out “quantitative easing” but has not made any firm commitment yet. He insists that the European Central Bank Connors’ War divx
is already been providing unlimited liquidity, as well as trying to push commercial banks to start lending more.
The Euro rate is still a full 1% higher than the UK rate, but Jean-Claude Trichet, ECB president, has not ruled out any further cuts this year. He said, “I do not exclude that interest rates could go down but we see a number of drawbacks associated with a zero rate level.”
Filed Under: Interest Rates