The European Central Bank has lowered its deposit rate by 10 basis points as Draghi looks to step down next month
In Frankfurt on Thursday, The ECB (European Central Bank) lowered its deposit interest rate further and decided to launch another round of bond buying to boost economic activity and inflation.
The ECB has lowered its deposit rate 10 basis points from minus 0.40% to minus 0.50%. Additionally, the ECB will also restart its QE program (Quantative easing) from November 1st buying 20bn euros of debt per month. This comes just nine months after ending the program. It’s worth noting the ECB will stop purchases before raising rates.
This will likely be Draghi’s final major act as he looks to step down next month.
Many financial news outlets report that the round of bond buying is being done to tackle sluggish growth and persistently slow inflation.
With any major event US President Donald Trump has had his two cents;
"European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports.... And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!"
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