The European Central Bank (ECB)) recognizes the seriousness of the economic downturn. Not only does it postpone the next rate hike for a few months, but it also approves a new wave, and it is already the third since the start of the Great Recession, of liquidity for banks. The aim is to shore up the financial market situation and, according to the statement, "help preserve the favorable loan conditions of banks". This new liquidity bar will begin in September and will end in March 2021.
The postponement of the rate hike is only a few months. But it shows to what extent the concern about the deceleration of the ecomía is deep. The next increase - which would be the first since 2011 - will no longer take place after the summer of 2019, the minimum term that the ECB had set - but, at least, by the end of 2019. "And, in any case, during all the time necessary to ensure the continuation of the sustained convergence of inflation to lower levels, although close, to 2%, "according to the usual tagline in the Eurobank. This means that Draghi will be dismissed this year from the position as the first ECB president who has never raised the price of money. The announcement makes official what was already taken for granted: the market did not expect there to be a rate hike this year.
It's the turn of the ECB. After what the OECD, the IMF wave European Comission have revised downward their growth forecasts for this year, everything points to the body responsible for coordinating the monetary policy of the eurozone will recognize at its meeting on Thursday that the economic climate deteriorates at a rapid pace. It is also expected to lower its inflation forecasts.