European Central Bank ECB – ECB tightens fight against impending crisis – Frankfurter Rundschau

European Central Bank ECB – ECB tightens fight against impending crisis – Frankfurter Rundschau

January 22, 2015

The ECB stands up to the threat of falling prices in the euro area. Photo: REUTERS

The ECB leaves its key interest rate for the euro zone unchanged at the historic low of 0.05 percent and announces new measures to combat the threat of price erosion on. Further details are to the central bank still post.

The European Central Bank (ECB) can be the prime rate for the euro zone at the historic low of 0.05 percent. The central rate for the currency union will not be further lowered, the central bank said on Thursday shortly before the highly anticipated press conference by ECB President Mario Draghi in Frankfurt am Main.

In the fight against low inflation in the euro zone had lowered the interest rate in September to a record low monetary authorities; but since then no longer be changed

. purchase of government bonds is expected

The European Central Bank (ECB) stands up with further Special measures against an imminent price decline in the euro area. Details wants the central bank, according to a spokeswoman announce yet on Thursday.

It is expected that ECB President Mario Draghi will announce a multi-billion program to buy government bonds. The Governing Council at its meeting in Frankfurt, as expected, at the same time decided to leave interest rates in the euro area at a record low of 0.05 percent

With a bond purchase program -. In the jargon of quantitative easing or called “QE” – could the Fed print money and buy fresh central bank securities, mainly government bonds. The fresh money comes in the ideal case of banks, which bonds were bought, in the form of loans among businesses and consumers and helps the economy a boost.

Put on economic growth, would heat up the the last extremely low inflation again. This concern would from a dangerous drop in prices across the board – for now completed

The effect of bond purchases is controversial among economists and central bankers, such as interest rates are already extremely low – ie deflation. Other special measures should therefore have only very limited. In addition, there is concern that the ECB’s zeal for reform in countries in crisis slows down when she will buy all the states in grand style notes. (Afp / AP)