The Frankfurt-based European Central Bank is not known for causing surprises. Since Mario Draghi took the helm the organisation has become known for, as he regularly repeats, patience, prudence and persistence. However, the ECB’s actions on Thursday did catch some off guard. The bank came out all guns blazing to try and counteract the eurozone slowdown, after revising down its growth projections for the bloc from 1.7pc to 1.1pc this year. The most important steps were to effectively rule out an interest rate rise this year and turn the money taps back on through a mechanism called targeted longer-term refinancing operations (TLTROs). TLTROs effectively hand cheap money to banks, encouraging them to lend to businesses – a stimulus intended to boost the real economy by making it easier for firms to borrow and invest. This move from the ECB indicated that it has hit reached its slow-growth pain threshold, according to Claus Vistesen of Pantheon Macroeconomics. Analysts at Rabobank quipped that it the new TLTRO effort was a matter of “The Last Try to Restore Optimism”. Greece dipped its toe into the capital markets last week when it issued a 10-year bond. It was considered a success with the bond only over a yield of 3.7pc. Seven years ago, at the peak of the debt crisis, such instruments were yielding around 37pc.
The European Central Bank (ECB) has effectively ruled out any further interest rate rises during 2019 and has reinstated targeted longer-term refinancing operations (TLTROs), in what some analysts have called a final attempt to “restore optimism”. TLTROs encourage banks to lend cheaply to businesses, with the aim of stimulating Europe's economies, suggesting the ECB has reached a threshold for slow growth. In its latest policy statement, published on Wednesday, the ECB, which is also responsible for setting monetary policy, said it would continue to support growth by keeping short-term rates at their current level until inflation returns to