- The ECB supports the interest rates in historical minimums to face the recession
- The European institution it made the marginal facility of credit inaltered, in 1,75 %
- The facility of deposit, for which it remunerates the money, is kept in 0,25 %
- The president of the ECB considers this measure to be ” very suitable “
Frankfurt (AGENCIES) – The European Central Bank (ECB) has decided to support the basic types of interest in the zone of the Euro in 1 % to stimulate the economy. The president of the European Central Bank (ECB), Jean Claude Trichet, has assured that the current level of interest rates is the “suitable one” bearing the available information in mind yauguró a gradual recovery of the economy of the euro-zone next year before the ” increasing signs ” that the global recession “touches the bottom”, in spite of the high degree of uncertainty that still persists.
In the press conference later to the meeting of the Council of Government of the ECB, who decided to keep the interest rates stable in 1 %, the French banker added that there will be kept the “weakness” of the economy of the block of the Euro in the second half of 2009, he affirmed that the pace of deterioration ” clearly is slowing down “. ” With a view to the next year, after a phase of stabilization, a gradual recovery is foreseen by quarterly positive rates of growth “, indicated Trichet.
” The banks must give money to an appropriate interest ”
Regarding the inflation, Trichet affirmed that the recent episode of negative inflation in the eurozone, which provisional reading of the CONSUMER PRICES INDEX of July placed in 0,6 negative %, is “temporary” and assured that the expectations of inflation to half and long term continue firmly anchored.
The European institution reported in Fráncfort that also it made inaltered the marginal facility of credit, for which it gives money to the banks, in 1,75 %. In turn, the ECB supported the facility of deposit, for which it remunerates the money, in 0,25 % per cent.
The economy of the countries that share the Euro still will suffer for months the effects of the financial international crisis. The president of the ECB, Jean-Claude Trichet, admitted at the beginning of July, for the first time from the snap of the crisis, that the fall of the credit grant presents some elements of the offer, there remembered the analysts of the bank UniCredit. Trichet has noticed repeatedly to the commercial banks of hisresponsibility of giving money to a few appropriate interest rates and suitable volumes.
The commercial banks of the zone of the Euro do not penetrate nowadays to the real economy, to the companies and to the homes, the enormous quantities that the ECB gives them
Without variation from May
The last indicators of trend of the zone of the Euro show a small improvement of the economic activity but yet it is not possible to speak about recovery, for what the ECB will support his governing rate in this minimum for a long time.
As reported the institution at that Jean Claude Trichet presides, it has been decided to support the price of the money in the approved level last May 7, which was not changed in the last review of July 2 either.
In this meeting of May, the ECB cut away in 25 basic points the interest rates, which stayed in 1 %, from 1,25 % in which they were from April 2. This cut added to the already approved ones in the last seven months that have taken the interest rates from 4,25 % up to 1% current.
Excluding these reductions, the last modification of the interest rates of the Eurozone was produced in July, 2008, when the ECB them raised a quarter of point, of 4 % to 4,25 %.