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ECB cuts interest rates.

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Ballasticmissile
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Username: Ballasticmissile

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Posted on Friday, September 13, 2019 - 12:16 pm:       

super....

its a good news for people like me...borrow more...spend freely.....work less....
Capacity vundi, laziness, and uninspired life is a waste of time.
YOLO kada....
But experiences is how you bring meaning to life. Worthiness should be earned with adequate efforts.
 

Ballasticmissile
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Username: Ballasticmissile

Post Number: 12949
Registered: 07-2012
Posted From: 79.216.167.209

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, September 13, 2019 - 12:15 pm:       

ECB cuts rates and tells governments to act



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https://www.ft.com/content/9b2c29c0-d53d-11e9-a0bd-ab8ec6435 630

he European Central Bank has announced its biggest package of rate cuts and economic stimulus in three years as President Mario Draghi warned governments that they needed to act quickly to revive flagging eurozone growth.

The ECB cut interest rates further into negative territory and revived its contentious €2.6tn programme of buying bonds for an unlimited period, in the latest sign of concern over the health of the global economy.

It also eased lending terms for eurozone banks and offered them tiered interest rates in a bid to ease the pressure on their lending margins.

The stimulus was immediately seized upon by US President Donald Trump, who demanded that the US Federal Reserve join the round of central bank rate cuts when it meets next week.

“European Central Bank acting quickly,” Mr Trump tweeted. “They are trying, and succeeding, in depreciating the euro against the VERY strong dollar, hurting US exports . . . And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!”.

Now is the time for fiscal policy to take charge

Mario Draghi
In response, Mr Draghi said: “We have a mandate. We pursue price stability. And we don’t target exchange rates. Period.”

He also stressed that the eurozone needed tax cuts and more spending to stave off a fresh crisis.

“Now is the time for fiscal policy to take charge,” said Mr Draghi, who will finish his eight-year term as ECB president and hand over to the former IMF managing director Christine Lagarde at the end of October.

The decision by the ECB initially pushed the euro lower, but that was shortlived. Within hours, the currency was sitting 0.3 per cent higher on the day against the dollar, at $1.104.

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The eurozone faced “more protracted weakness” than previously thought, mainly because of the global trade slowdown, Mr Draghi added. The ECB cut its forecast for growth in the 19-member single currency zone this year by 10 basis points to 1.1 per cent, and by 20 bps to 1.2 per cent for 2020.

It also lowered its forecast for inflation by 10bp to 1.2 per cent this year, and by 40bp to 1.0 per cent next year. In response, the ECB signalled that interest rates would stay lower for longer than it had previously expected, changing its forward guidance. It had previously said that interest rates would not rise before mid-2020.

The ECB cut its deposit rate from minus 0.4 per cent to a new record low of minus 0.5 per cent. It also said it would restart its quantitative easing (QE) programme, buying €20bn of bonds every month from November until inflation expectations came “sufficiently close to, but below, 2 per cent”, at which point interest rates could also start rising again.
Capacity vundi, laziness, and uninspired life is a waste of time.
YOLO kada....
But experiences is how you bring meaning to life. Worthiness should be earned with adequate efforts.

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