ECB postpones interest rate increase and offers cheap loans to banks

ECB postpones interest rate increase and offers cheap loans to banks

The ruling has led government bond yields and the euro to fall.

The ECB (European Central Bank) changed the course of its monetary tightening plan on Thursday (7), waits until 2020 for its first post-crisis high interest moment and offered banks new rounds of cheap loans to help revive the euro area economy.

The bolder-than-expected move comes at a time when the American Fed (Federal Reserve) and other central banks around the world are also avoiding further increases to the interest rates. The change stands out as a global trade war, uncertainties about Brexit and the lingering concerns about debt in Italy are bearing a price on economic growth around Europe.

Read more in Folha de S. Paulo

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