European Central Bank (ECB) has kept the base rate on the zero level, CNBC transmits. Thus, the regulator retained intrigue relative to its further action under the conditions of the coronavirus pandemic, economists are noted.
Speaking after the meeting of the leadership of the ECB, his head of Christine Lagard stated that the preservation of the zero interest rate in the eurozone should contribute to the preservation of stability and strengthen the confidence from the market.
Another question concerns the quantitative mitigation program (purchases from banks of state and corporate bonds in order to influence additional liquidity in the banking sector). Lagard noted that the volume of purchases will be increased, but will remain within the limits of 1.85 trillion euros scheduled until next spring.
At the same time, some members of the leadership of the ECB are tuned to the termination of the stimulation of the European economy. They indicate that the growth of money supply leads to excessive inflation and the increase in the cost of borrowing, including governments.