Wednesday , September 28 2022

The ECB also looks at the possibilities for further action in terms of interest rates


Ljubljana – "The eurozone governors have discussed the macroeconomic and financial conditions that have worsened over the past few months, especially in the international trade, while the services and labor market situation remains favorable. there is still high uncertainty and risks of further deterioration in the economic picture, "explained the Bank of Slovenia Governor following the monetary meeting of the Council of the European Central Bank (ECB). Boštjan Vasle,

Governors came to the conclusion that expansionary monetary policy should continue and interest rates remain low. "We have adjusted our interest rates guide – now the ECB board expects current or lower interest rates at least until mid 2020 or as long as necessary to provide a sustainable approach to inflation for our goal." purchase of bonds.

If the inflation outlook is not realized, they will use all available tools, "so we've instructed the professional services to investigate the possibilities for further action," he said.

In this way, the ECB will explore how to strengthen interest rate guidelines, how to address mitigation of adverse effects of negative interest rates, and explore possibilities for the scope and composition of potential new net purchases of securities, the Slovenian governor central bank. The decisions he says show "our willingness to maintain favorable financing conditions with current and possible new measures and thereby support euro area economic growth and the medium-term convergence of inflation to the target level."

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