ECB Unveils Economic Stimulus Plan
Can they bank on this solution? Facing a potential global economic slowdown, the European Central Bank unexpectedly announced a set of measures yesterday to strengthen the 19-member eurozone. Officials said they’ll freeze the interest rate this year while also offering banks cheaper loans to prompt more lending to businesses. ECB chief Mario Draghi said economic growth in 2019 will likely be just 1.1 percent, down from a forecast of 1.7 percent.
Is this cause for alarm? Although the global economy is still expected to grow this year, analysts say the ECB’s move suggests it’s “running out of ammo” to fight a deeper recession, if necessary.
Don’t miss OZY’s original series, Economies of the Future.