The European investment bank ( ECB ) has effectively ruled out any further interest rate rises during 2019 and has reinstated targeted longer - term refinancing schemes ( TLTROs ) , in what some analysts have called a final step to “ reverse optimism ” . TLTROs encourage banks to lend cheaply to businesses , with the aim of improving Europe 's economies , suggesting the ECB has reached a threshold for slow growth . However , some have warned the move raises the risk of a “ doom loop ” , as Italy may be teetering on the brink of a downgrade in its credit rating .
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. However, some have warned the move raises the risk of a “doom loop”, as Italy may be teetering on the brink of a downgrade in its credit rating.