ECB keeps rates low, worried by eurozone recovery risks from Ukraine
- 10 years ago
There were no surprises from the European Central Bank on interest rates as it waits for earlier stimulus measures to take effect.
It had cut borrowing costs to record lows in June, became the first major central bank to charge commercial banks for holding their deposits overnight and announced a new programme of ultra-cheap loans to be launched in September.
One focus of ECB President Mario Draghi and the other policy makers was the emerging risks to the eurozone’s recovery from the conflict in Ukraine.
Heightened tensions between Russia and Western countries have already hit business confidence in the region.
Also under discussion was the fact that Italy, the bloc’s third largest economy, just slipped back into recession.
It had cut borrowing costs to record lows in June, became the first major central bank to charge commercial banks for holding their deposits overnight and announced a new programme of ultra-cheap loans to be launched in September.
One focus of ECB President Mario Draghi and the other policy makers was the emerging risks to the eurozone’s recovery from the conflict in Ukraine.
Heightened tensions between Russia and Western countries have already hit business confidence in the region.
Also under discussion was the fact that Italy, the bloc’s third largest economy, just slipped back into recession.