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The European Central Bank announced that it will keep benchmark interest rates at a low level next year, while the US central bank should continue to raise them in the coming months. come.
The European Bank for 19 countries whose currency has decided The President of the ECB, Mario Draghi, said at a press conference that a "significant boost to monetary policy" remains to do, although the eurozone economy is experiencing solid growth
19659003] The bank announced that by the end of the year, it will gradually reduce its stimulus program by buying bonds and will keep interest rates at the current level until 2019. It is not clear if that means until July, September or later.
The ECB's short-term interest rate has remained at a record low of zero percent, while the deposit rate of commercial banks will remain below 0.4 percent. It is a punishment that aims to force banks to borrow money and thus support the economy, instead of accumulating cash.
In the United States, the Federal Reserve's main reference rate is between 1.75% and 2%.
The ECB is reducing the incentive program as the European economy grows, but it is considerably slower than the federal reserves that have already begun to raise interest rates. The Fed has been much faster than the ECB in reducing its incentives as the US economy emerged faster from the Great Recession and now has lower unemployment rates.
The Central Bank of Great Britain and Japan is gradually reducing its incentives. Great recessions.
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