Connect With PPD
Follow Us:
Sections: Economy

European Central Bank Keeps Borrowing Rates Low Amid Two-Sided Pressure

ECB President Mario Draghi (seen in photo) resists argument from Sabine Lautenschlaeger, Germany’s appointee to the ECB’s Executive Board, said now was not the time for state bond buying. (Photo: REUTERS)

The European Central Bank announced they would keep the cost of borrowing at record lows after a meeting Thursday, facing two-sided pressure from Washington and Germany.

Both a public and private call from Washington pressured the ECB to hold the rates down, as administration officials and Fed players were concerned further global slowdowns would harm the U.S. economy. With no recovery in sight in at least 18 countries that share the euro, ECB President Mario Draghi will present fresh growth and inflation forecasts from bank staff at his post-meeting news conference at 1330 GMT.

Yet, both of these measures are likely to be downgraded further. Still, the U.S. Federal Reserve’s influential vice chair, Stanley Fischer, said that money-printing would help Europe as it had the United States.

“If the ECB moves in that direction, it will have positive effects,” Fischer, who was Draghi’s academic mentor at university, told a newspaper in Italy.

However, Draghi considerable opposition from an economically stronger-than-average Germany. Last week, Sabine Lautenschlaeger, Germany’s appointee to the ECB’s Executive Board, said it was not the time for a state bond-buying program that would reduce the value of currency, increase inflation risks and inevitably increase the cost of borrowing.

While the ECB could extend their scheme to buy secured debt, including corporate bonds, it is unlikely it will announce any money printing to buy government bonds.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

3 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

4 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

4 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.