ECB actions to boost eurozone economy
Here are the main actions taken Thursday by the European Central Bank kickstart the chronically weak eurozone economy.
- The ECB lowered the main rate at which it lends to commercial banks -- the so-called refi rate -- to zero for the first time ever from 0.05 percent.
- It pushed the interest rate on its deposit facility for commercial banks to -0.40 percent from -0.30 percent. This means commercial banks in fact pay the ECB if they choose to transfer their excess funds at the end of the day.
- The ECB increased the amount of its monthly debt purchases -- which have so far been mostly eurozone government bonds -- to 80 billion euros per month from 60 billion euros.
- The ECB said it would also start buying up corporate debt as part its monthly purchases.
- Commercial banks will be offered another series of loans at ultra-low interest rates to ensure they have enough funds to lend to businesses.
© 2016 AFP