The European Central Bank said it will offer more cheap loans to banks and keep interest rates at record-lows for longer as a weakening economyderailed its plan to withdraw stimulus. Becoming the latest central bank to capitulate to faltering demand, President Mario Draghi and fellow policy makers will offer banks the first round of long-term loans since 2016, starting in September. Officials left their key interest rates unchanged, and said they’ll stay at current levels through the end of the year, several months later than previously anticipated. The decision came just three months after the ECB halted its crisis-era bond-buying program and signaled it may raise interest rates later this year. The change of gears reflects slowdowns in large economies such as Germany and Italy amid the global rise of protectionism and populism. Draghi is set to reinforce the sense of concern when he unveils new forecasts at a press conference at 2:30 p.m. in Frankfurt. Bloomberg News reported on Wednesday that the latest projections show extensive downgrades for inflation and economic expansion in 2019 with a pickup anticipated toward the end of the year. https://www.bloomberg.com/news/arti...oans-to-banks-as-slowdown-derails-policy-exit
Yepppppp 3rd stimulus since 2014!!!! Once again...more stimulus and more stimulus Just shows you how weak and Fu©king pathetic this world economy really is.... All smoke and mirrors... All economic growth in all economies is nothing but stimulus. World economies have zero growth...zero growth!!! Without stimulus GDP would be negative. Nothing but a broken world economy....
Bad news is good news! The worse the economy looks, the more market players will anticipate the Fed resuming their pumping, NIRP. Just like the Metallica song, "Nothing Else Matters". TO THE MOON!! (Who knew the Fed could be a rocket?)
They were talking about it since January... Europe Banks will need liquidity to withstand the coming storm, this was obviously coming but I would of though sooner. They mentioned in September loans would start and that is a little risky considering weakness in Spanish, German and Italian Banks. I think Australia and Japan/South Korea Central Banks are next up, North America will be last... China has cut reserves 3 times this year, cut tax on everything they can, biggest QE world has ever seen, and still in deep recession. Banks will need a lot of liquidity!