The ECB (European Central Bank) has reduced its previous core interest rate to 0%. This was done in the framework of measures, which are aimed to renew the whole Eurozone and its economy.
Furthermore, the ECB plans to increase its quantitative easing program to €80 billion a month.
The scheme requires purchasing government debt and corporate bonds.
It was decided to reduce the bank deposit rate to minus 0.4%.
The measures mentioned above turned to be extremely tough even for the most optimistic investors.
According to the head of foreign-exchange strategy at Saxo Bank, this means a very strong shot demonstrating the ECB’s attempts to gain confidence after its December lesson.
The attempts to stimulate European economy were announced three months ago. However, the results are still unrevealed.
The president of the ECB Mario Draghi once said that Europe reduced its inflation predictions in order to reflect the recent oil prices decline.
He noted that probable negative impacts on the economy of Eurozone still remained very high.
According to the bank expectations, European GDP is to rise by 1.4% in 2016. Next year, it should be increased by 1.7%.
They hope to keep the bond-buying program in force until the end of March 2017. Later, if necessary, a new scheme will be developed.