European Central Bank council member hinted Thursday that the bank may take further measures to boost the euro-zone economy, because the line will be preceded by its deposit rates down to zero, but this initiative did not show to urge the banks to raise lending The amount of signs.
European Central Bank has lowered its benchmark interest rate by 25 basis points to 0.75 percent of the historically low levels; pay for overnight bank deposits, deposit interest rates down to zero, a move designed to weakness in the euro area economy to provide support. For the ECB, the deposit interest rates to zero is an unprecedented practice, the measure approved last week, starting Wednesday officially activated, which means that banks will cash stored in the ECB will not receive any proceeds. Banks have made the response will only be close to 500 billion euros (about $ 610 billion) in cash from the ECB's deposit tools out, and then transferred them to the central banks in current account.
Inflationary pressures weakened, and there is no indication that the bank will provide more loans to help the resumption of economic growth stalled in the situation, the European Central Bank council member hinted that it may act again. Klass - Kenuo Te (Klaas Knot), ECB governing council member of the Dutch central bank governor said in an interview with the German version of "Financial Times": "If the situation deteriorate further, then there is no creed can stop us (the benchmark interest rate reduced to less than) 0.75%. For now, we believe that an interest rate of 0.75% is appropriate. "
Ke Nuote is widely regarded as the core of the hardliners of the European Central Bank council member, to take a strong stand on the issue of inflation. His remarks are by far the most obvious signal that cut interest rates to historic lows last week, the ECB may continue to further cut its benchmark interest rate.
Weak growth
ECB monthly bulletin released earlier Thursday stressed that the euro-zone economy is very fragile state of health. The communique said the weak performance of the euro area economic growth, enhanced uncertainty is leading to the pressure of economic confidence.
Director of the European Central Bank, the Austrian central bank governor Ewald - (Ewald Nowotny), Nowotny said: "the entire euro zone's growth prospects are deteriorating. Growth rate between the EU and within the euro area, countries, divisions are growing wider. "Previously, the European Central Bank President Mario - Mario
Draghi (Mario Draghi) Monday also suggests that the bank may further cut its benchmark interest rate, he said at the time any further action to be taken in the future will depend on economic data .
The official data released Thursday showed the euro area manufacturing production in May unexpectedly increased manufacturing output in France and the Netherlands to provide new signs, indicating that the euro zone sovereign debt crisis is on a strong economy body causing damage. Kenuo Te pointed out that the European central bank will deposit interest rates to negative, the move means that the bank actually will be required to pay to the European Central Bank can be deposited in the overnight deposit to the line. Kenuo Te said: "We should learn from the experience of other countries have to implement negative interest rates, then you can decide whether to choose to do so."
ECB Governing Council members, the Slovak central bank governor Ma Kuke (Jozef Makuch), said in an interview: "When necessary, the ECB will spend the already existing measures or new measures."
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