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
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.