Following the historic low in February, the experts have not given in the key. After speculation that marked a low strongest types, the president of the European Central Bank (ECB), Jean Claude Trichet, has indicated that the entity has decided to stop at 0.25% interest rates.
Although it has been less than expected, the rate has reached its low of 1.25% and explained that the Governing Council of the institution will launch new measures “Unconventional.”
This reduction has become the sixth consecutive decline since October 2008. The current rates, put the price of money at the lowest level since 1999, with a decrease of three points since October 2008 (4.25%) to the current 1.25%.
This cut in rates in quarter-point, has not closed the door for future new rebate. This decision was primarily based on “severe decline” in economic activity in the eurozone. Trichet took the opportunity to express the conviction of the ECB’s impossible for a deflationary risk.
The owner of the ECB, said that by mid-year data may provide harmonized inflation negatively, albeit temporarily, and that by the end of the year the inflation figure will be agreed with the price stability objective of the institution, just below 2%.
