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ECB cuts deposit rate to-0.5 per cent

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The European Central Bank’s deposit facility rate is lowered by of 0.4 to-0.5 percent of the time. That is, the ECB’s Thursday decision. The key interest rate unchanged at zero per cent, giving the banks free money to be able to continue to borrow. The central bank will launch november 1, will also be a new business support programme. They will be monthly, for a 20 billion-euro debt buy-back.

as a result of the further lowering of the deposit rate, the banks must still pay for the excess money that they can temporarily park at the european central bank. The central bank wants them to boost their funds, to the extent possible, to apply for credit, so the economy is going. To get the banks to go to the lavatory, there are now exceptions to the adverse interest to be a part of their deposits. Banks have long been calling for the scheme to be in their declining margins are to be protected.

in Addition, it was announced by the ECB on that, for 20 billion euros in bonds is to buy them in a month. That program will start in november and will be as long as necessary,” walk away, and the very before the key ECB interest rates to increase” are expected to finish. The central bank is put at the end of last year, a opkoopprogramma of a four-year increments, with a size of a total of 2,600 million euros. At it’s peak, the ECB’s monthly, an 80 billion euros in European debt instruments.

the ECB’s president, Mario Draghi later on Thursday, a more detailed explanation on the interest rate decision. The interest rates on government bonds fall as a result of the decision to advance even further in the stock markets, with the exception of the bankenaandelen positive response.

for More on the European Central Bank (ECB), Lagarde resigns as IMF managing director, and is on it’s way to the European Central Bank and THE FINANCIAL-ROCK-star SuperMario will give bankaandelen wings, ECB keeps interest rates unchanged

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