Useful interest rates no longer obstacle to growth
Jochim Nagl, a member of the European Central Bank Policy Council, said on Thursday that the costs of borrowing in the Euro area are no longer an obstacle to economic growth, but the need to be careful in making future monetary policy decisions.
According to the Central Bank head of German Central Bank, the head of the Central Bank, German, told reporters that the interest rate on deposits has been stabilized at 2.25 per cent, in any way, after seven reductions, after seven reductions, will not be limited to growth. “
“Due to continuous excessive uncertainty, we must be very careful with the monetary policy,” he said.
The minutes of the European Central Bank meeting were close to its conclusion in the eurozone, and even though the World Trade War caused the high prices after the World Trade War, it was preferred to maintain stability. The Bank has cut interest rates for the seventh time in the last year, warned that economic growth is under severe pressure due to US customs duties, which strengthened expectations towards further monetary facilities in the coming months.
The report said: “Members expressed their growing confidence in the return of inflation to its target level in the middle of the day, and they stressed that the shock of inflation is going to end.” “The default forces are likely to dominate the short term,” he said.
However, some policy designers have warned that these risks will record more inflation than in the long -term expensive, and in the light of globalization declining and the rise of commercial obstacles, which increases production costs on companies.
The record suggests that “some members are in the nature of long -term inflation, depending on the negative consequences of the breakdown of global value chains.”
Policy designers have warned that any temporary financial renewal can be pushed to provide additional support immediately, which can lead to a higher and unnecessary facility, especially if it is associated with an increase in financial aid.
Despite the decline in trade tensions from the April meeting (April), there is still ambiguity over the financial estimates that open doors for the additional reduction of interest rates at the European Central meeting on June 5.
Investors in financial markets are predicting about 90 percent of the opportunity to lower interest rates next month, and they have an additional reduction in the end of this year, which can push the interest rate of 1.75 percent at the Neutral Range of European Central Bank, which does not stimulate growth.
