ECB Cuts Rates and Expands Stimulus — Live
European Central Bank President Mario Draghi. ENLARGE
European Central Bank President Mario Draghi. PHOTO: YVES HERMAN/REUTERS
Mar 10, 2016 7:09 am ET
13 COMMENTS
The European Central Bank cut interest rates and expanded its asset-purchase program to €80 billion ($88 billion) a month in a bid to boost inflation and reinvigorate a stuttering eurozone economy.
The central bank cut its deposit rate to minus 0.4% and its main interest rate to zero.
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8:54 am
Vision of the Future
Ah—interesting question. Reporter points out that by extending loans to banks at rates as low as -0.4% for four years, the ECB is effectively giving forward guidance about rates beyond Mario Draghi’s term of office!
Something of a central bank no-no to tie the hands of your successor.
by Jason Douglas
8:53 am
Draghi Unleashed (Again)
Time for Draghi’s cross-check: yep, it is a bazooka, whichever way you look at it.
— James Mackintosh (@jmackin2) March 10, 2016
by James Mackintosh
8:52 am
ECB Economists Cut Inflation Forecast
As expected, the ECB’s economists slashed their forecast for inflation this year in response to sharp declines in oil prices, and lowered their projections for 2017.
They now expect consumer prices to rise by just 0.1% in 2016, having forecast in December they would rise by 1%, with inflation set to pick up to 1.3% in 2017 and 1.6% in 2018, still below its target of just below 2%.
by Paul Hannon