ECB Cuts Interest rates; Signals No Major Bond Buying

On Thursday ECB President Mario Draghi cut interest rates from 1.25% rates 25 basis points to 1.0% down from 1.25% in a move aimed at lower borrowing costs and spurring growth in Europe.  Draghi also loosened collateral requirements for European lenders. Draghi refused to signal any new bond purchases by the ECB which some economists had been expecting to help stabilize the euro zone.

Draghi was questioned by reporters and responded directly to questions about the ECB decision to not purchase bonds. Draghi said that the EU Treaty prohibits monetary financing.  He also rejected the proposal for the ECB to  lend money to the IMF which would exclusively be used to help indebted countries in the European Union.  The market dropped lower after hearing Draghi’s remarks.

* Due to technical problems, I have been unable to publish longer articles about this topic on this website. I am working to resolve this problem. A longer and more thorough article will be written on  this topic later tonight or early Friday morning.  Stay tuned.                        

About Johnathan Schweitzer 1467 Articles
Welcome to Schweitz Finance. I hope that my financial website will provide you with relevant market information to help you manage your investments with greater clarity and insight.
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