European Central Bank says rates won't change until the end of the year

Dow Jones Outlook ECB Policy May Decide Index's Move

Dow Jones Outlook ECB Policy May Decide Index's Move

The bolder-than-expected move showed European Central Bank was having to revisit plans to dial back its unprecedented stimulus measures as a global trade war, Brexit uncertainty and simmering debt concerns in Italy take their toll on a fragile eurozone.

Policymakers had not expected to change their guidance on interest rates.

Slumping growth also forced Mario Draghi, the Bank's president, to launch a new scheme to pump cheap funds into eurozone banks, bolstering lenders across the currency area but particularly in recession-struck Italy.

The European Central Bank slashed its growth and inflation forecasts for 2019 and lowered those for 2020 and 2021 on Thursday, acknowledging that Europe's slowdown was longer and deeper than earlier thought. The surprise move caused yields on government bonds to fall and the euro slipped to $1.1244, about 0.6 percent down on the day, after the announcement.

"We are [in] a period of..."

"The persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets appears to be leaving marks on economic sentiment", Draghi told journalists in Frankfurt on Thursday.

Amazon Is Closing 87 US Pop-Up Electronics Stores Next Month
The pop-up stores, meanwhile, will be shut down by the end of next month, the Journal said. Amazon's pop-up store at the Queens Center mall in Elmhurst, New York, in late 2016.

Commercial banks have indeed already started restricting credit in the face of falling industrial output and exports, threatening to reinforce the slowdown. That signals the level of concern among Governing Council members, something that's been echoed across other institutions and central banks in recent days.

"These new operations will help to preserve favourable bank lending conditions and the smooth transmission of monetary policy", said Mr Draghi.

The ECB is reverting to stimulus just three months after policy makers chose to end their bond-buying programme and hoped to start weaning the euro-area economy off its crisis-era stimulus.

"A sign of panic or an attempt to get ahead of the curve?", ING economist Carsten Brzeski wrote in a note to clients.

"At the same time, however, it is also a bit of a gamble as any next step from here to tackle a severe downswing of the economy would now require unprecedented measures".

Recommended News

  • Justin Trudeau and Jody Wilson-Raybould on the SNC-Lavalin affair

    Justin Trudeau and Jody Wilson-Raybould on the SNC-Lavalin affair

    His conciliatory remarks in front of reporters on Thursday were created to shift public attention away from the scandal.
    Powerful blast rocks Jammu bus stand, 18 injured rushed to hospital

    Powerful blast rocks Jammu bus stand, 18 injured rushed to hospital

    The injured included 11 residents of Kashmir , two from Bihar and one each from Chattisgarh and Haryana, the officials said. He added that there were no specific alerts from intelligence agencies prior to the attack.
    USA  trade deficit jumps to 10-year high in 2018

    USA trade deficit jumps to 10-year high in 2018

    President Donald Trump has said that one of the main reasons he had put steep tariffs in place was to combat the trade deficit. Capital goods imports increased 2.7 billion USA dollars, with imports of computer accessories rising 0.7 billion US dollars.
  • Disney's 'Star Wars: Galaxy's Edge' Theme Park Lands Will Open This Year

    Disney's 'Star Wars: Galaxy's Edge' Theme Park Lands Will Open This Year

    Disney also said guests wanting to experience the new Star Wars land will need to make a "no-cost reservation" to access the land. And yet, this makes us wonder what the opening months of Star Wars: Galaxy's Edge will look like with only one major attraction.
    Europa League: Arsenal squad to face Rennes revealed

    Europa League: Arsenal squad to face Rennes revealed

    It had barely bounced once however before he ran onto it and unleashed an absolute thunderbastard past Petr Cech in the Arsenal goal.
    3 things learned as Manchester United stage dramatic comeback against Southampton!

    3 things learned as Manchester United stage dramatic comeback against Southampton!

    But two goals from Romelu Lukaku and a dramatic late Marcus Rashford strike secured the 3-3 triumph on away goals in Paris. The achievements we've made in a short space of time have been fantastic. "I was happy that he scored".
  • Broncos, Redskins Agree on Case Keenum Trade

    Broncos, Redskins Agree on Case Keenum Trade

    In Keenum's lone season with the Broncos, the 31-year-old threw for 3,890 yards and 18 touchdowns to 15 interceptions. Keenum had an up-and-down season in Denver after he signed a two-year, $36 million deal with the team in March 2018.

    Cobra Kai season 2 trailer features return of fan-favorite character

    The series continues the rivalry between Ralph Macchio's Daniel LaRusso and William Zabka's Johnny Lawrence, while introducing a new crop of young apprentices for each of the dojo leaders.
    Celtics guard (thigh) out vs. Kings

    Celtics guard (thigh) out vs. Kings

    They will be playing in front of an energetic crowd, Irving is out and the Celtics are on the second night of a back-to-back. Boston Celtics guard Kyrie Irving will miss the game against the Sacramento Kings with a thigh injury.
  • Kelly Jailed Again, This Time for Unpaid Child Support

    Kelly Jailed Again, This Time for Unpaid Child Support

    Kelly said those lies include that he's holding women against their will and that he has a "cult". He said Kelly did not have the whole amount because he has not been able to work.
    China to slash taxes, boost lending to shore up slowing economy

    China to slash taxes, boost lending to shore up slowing economy

    China's GDP growth slowed down to 6.6 percent past year , the slowest pace since 1990, but it fit within the official forecast. But he gave no details of how far that might extend for foreign competitors.

    U.S. seeks to lift endangered species protection for gray wolf

    That decision was upheld in 2017 by a federal appeals court decision, keeping wolves protected across the region to this point. Protections for Northern Rockies states' wolves were lifted in 2011 and hundreds are now killed annually by hunters.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.