the European Central Bank decided to lead the euro-zone interest rates again by 0.5 percentage points lower, with a view to reversing the decline in the euro zone economy. However, some analysts pointed out that the European Central Bank to cut interest rates hard to boost the euro-zone economy, I am afraid that the European Central Bank to cut interest rates further to stimulate economic growth.
This is the European Central Bank in less than 30 days of the second period to cut interest rates. Oct. 8, 6 in the West Bank to take joint action to cut interest rates, European Central Bank will be leading euro-zone interest rate has been reduced by 0.5 percentage points, fell to 4.25 percent from 3.75 percent. This is obviously because of the economic situation in the euro zone because of the financial crisis was a sharp deterioration in the euro area and short-term inflationary pressures continued to ease.
The European Central Bank President Jean-Claude Trichet on the 6th to make the decision to cut interest rates, he said, increased financial market turmoil and its impact is likely to expand at a fairly long period of time, as well as suppress global demand in the euro zone, the current economic situation "very" uncertain. Jean-Claude Trichet did not use the word recession, but 3 of the European Commission's autumn economic forecasts published reports indicate that the euro-zone economy into recession almost certain, but next year the situation is still not optimistic.
In the second quarter of this year, the economy in the euro zone for the first time than the negative growth in the ring, and then the outbreak of the financial crisis in the euro-zone economy even worse, after two quarters of this year is expected to slip further. By the financial crisis, as the promotion of the three major engines of economic growth in the euro zone's investment, consumption and exports all-round weakness. The European Commission expects euro-zone economic growth next year will be only 0.1 percent. 6, and the International Monetary Fund released a more pessimistic forecast that the euro-zone economy next year will decline 0.5 percent. Therefore, in order to avoid the economic situation continues to deteriorate, has always been to contain inflation as the most important task of the European Central Bank had to change strategy in the near future, take steps to cut interest rates to stimulate the economy.
And the United States and other Western countries, the central bank, European Central Bank is in crisis after the outbreak of the loan-to-time to take action to cut interest rates most of a slow. The reason why this was mainly due to the past period of time, bulk commodities such as crude oil prices rising, the euro-zone inflation rate reaching new heights. In the face of high inflation and economic slowdown on both sides of the attack, the European Central Bank as at the end of July in order to control inflation and keep interest rates. September in the United States began a new round of financial turmoil, the end of this round of rate hike cycle.
In the near future to ease pressure on inflation in the euro zone, European Central Bank to cut interest rates to provide more policy space. With the significant downturn in international oil prices, inflation in the euro zone, following the middle of this year rose 4% after the peak, in October had dropped to 3.2 percent is expected after the next two years will be gradually reduced to the European Central Bank to maintain price stability 2% of the set warning line.
However, some analysts believe that the European Central Bank to cut interest rates this is not enough bold. On the same day, Britain announced that the Central Bank the Bank of England will cut the benchmark interest rate by 1.5 percentage points, the largest decline is expected to exceed the outside world. By contrast, the European Central Bank's efforts to cut interest rates investors are disappointed to varying degrees, resulting in European stock markets fell. Analysts predict that because of the severe economic situation, the European Central Bank is likely in the December monetary policy decision-making continue to cut interest rates.
According to Jean-Claude Trichet said the European Central Bank on the 6th in the monetary policy decision-making meeting considered whether to cut interest rates 0.75 percentage points, but ultimately it was the unanimous choice of a more conservative approach. Analysts said Trichet said the details of this shows that the European Central Bank to cut interest rates again on an open mind, was not in one step is likely to be further observed trends in the economy, such as the euro zone in December the results of the latest economic forecast released after the decisions are made .
Many economists believe that the current economic and inflation situation in the euro zone, European Central Bank over the next period of time will likely cut interest rates.
This is the European Central Bank in less than 30 days of the second period to cut interest rates. Oct. 8, 6 in the West Bank to take joint action to cut interest rates, European Central Bank will be leading euro-zone interest rate has been reduced by 0.5 percentage points, fell to 4.25 percent from 3.75 percent. This is obviously because of the economic situation in the euro zone because of the financial crisis was a sharp deterioration in the euro area and short-term inflationary pressures continued to ease.
The European Central Bank President Jean-Claude Trichet on the 6th to make the decision to cut interest rates, he said, increased financial market turmoil and its impact is likely to expand at a fairly long period of time, as well as suppress global demand in the euro zone, the current economic situation "very" uncertain. Jean-Claude Trichet did not use the word recession, but 3 of the European Commission's autumn economic forecasts published reports indicate that the euro-zone economy into recession almost certain, but next year the situation is still not optimistic.
In the second quarter of this year, the economy in the euro zone for the first time than the negative growth in the ring, and then the outbreak of the financial crisis in the euro-zone economy even worse, after two quarters of this year is expected to slip further. By the financial crisis, as the promotion of the three major engines of economic growth in the euro zone's investment, consumption and exports all-round weakness. The European Commission expects euro-zone economic growth next year will be only 0.1 percent. 6, and the International Monetary Fund released a more pessimistic forecast that the euro-zone economy next year will decline 0.5 percent. Therefore, in order to avoid the economic situation continues to deteriorate, has always been to contain inflation as the most important task of the European Central Bank had to change strategy in the near future, take steps to cut interest rates to stimulate the economy.
And the United States and other Western countries, the central bank, European Central Bank is in crisis after the outbreak of the loan-to-time to take action to cut interest rates most of a slow. The reason why this was mainly due to the past period of time, bulk commodities such as crude oil prices rising, the euro-zone inflation rate reaching new heights. In the face of high inflation and economic slowdown on both sides of the attack, the European Central Bank as at the end of July in order to control inflation and keep interest rates. September in the United States began a new round of financial turmoil, the end of this round of rate hike cycle.
In the near future to ease pressure on inflation in the euro zone, European Central Bank to cut interest rates to provide more policy space. With the significant downturn in international oil prices, inflation in the euro zone, following the middle of this year rose 4% after the peak, in October had dropped to 3.2 percent is expected after the next two years will be gradually reduced to the European Central Bank to maintain price stability 2% of the set warning line.
However, some analysts believe that the European Central Bank to cut interest rates this is not enough bold. On the same day, Britain announced that the Central Bank the Bank of England will cut the benchmark interest rate by 1.5 percentage points, the largest decline is expected to exceed the outside world. By contrast, the European Central Bank's efforts to cut interest rates investors are disappointed to varying degrees, resulting in European stock markets fell. Analysts predict that because of the severe economic situation, the European Central Bank is likely in the December monetary policy decision-making continue to cut interest rates.
According to Jean-Claude Trichet said the European Central Bank on the 6th in the monetary policy decision-making meeting considered whether to cut interest rates 0.75 percentage points, but ultimately it was the unanimous choice of a more conservative approach. Analysts said Trichet said the details of this shows that the European Central Bank to cut interest rates again on an open mind, was not in one step is likely to be further observed trends in the economy, such as the euro zone in December the results of the latest economic forecast released after the decisions are made .
Many economists believe that the current economic and inflation situation in the euro zone, European Central Bank over the next period of time will likely cut interest rates.
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