Tag: ECB

The European Central Bank reduced the deposit facility rate, its policy interest rate anchor, by a quarter of a percentage point to 3.5%, as the central bank slightly lowered its economic growth forecast.

EU’s Single Resolution Board has enforced payment moratorium on three European subsidiaries of Russian bank Sberbank, which is under US-led sanction, and is accessing whether any resolution action would be need to to protect public interest.

Luis de Guindos, vice president of the European Central Bank, depicted the coronavirus as an additional " layer of uncertainty to global and euro area growth prospects,"

An ECB survey found that the retailers review and change their prices most often, while consumer and business service firms adjust their pricing the least often. Firms in the manufacturing sector, meanwhile, have a price adjustment frequency somewhere in between the above sectors

In a recent research, four European Central Bank economists found that negative interest rate policy in the eurozone can encourage banks to increase lending and encourage cooperations to increase investments. That is, contrary to what macroeconomics models usually predict, interest rate policy can still has stimulative effect even the zero lower bound is reached.

The latest Purchasing Manager Index (PMI) for the two largest economies, Germany and France, is showing a clear sign of looming recession.