The ECB is Keeping Rates Steady: Here’s What That Means
The European Central Bank voted to keep interest rates at their historic lows of 0.5 percent, Reuters reports. At the bank’s monthly meeting in Paris, France, the ECB decided to keep interest rates at their current levels. The move was widely anticipated by economists, coming as no shock to those familiar with the bank’s stance toward the region’s economies. Where many are tuning in, however, is the press conference and comments of Mario Draghi, the chief of the ECB, which happens after the meeting concludes.
Draghi has declared that the bank will hold interest rates at their current levels, or lower, until the eurozone has shown full signs of a recovery. The amount of time that will take, which has not been specified exactly, has been described by Draghi as an “extended period.”
However, some have questioned the bank’s capability to maintain interest rates at such low levels on a medium or long-term basis, even if the policy is successful on an immediate scope.