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Introduction: European Central Bank said it will restart QE from November 1.
On the evening of September 12th local time, the European Central Bank stated in its latest interest rate resolution that it would lower the deposit interest rate by 10 basis points to -0.5%, and the financing rate and loan rate remain unchanged. After the resolution of
was announced, the euro rose 40 points against the US dollar and then quickly dived for more than 60 points.
Source丨21st Century Business Herald (ID: jjbd21)
Reporter丨 Zhou Zhiyu
Edited by Zhang Han
On the evening of September 12th local time, the European Central Bank stated in its latest interest rate resolution that it would lower the deposit interest rate by 10 basis points to -0.5%, and the financing rate and loan interest rate remain unchanged.
In addition, starting from November 1, the asset purchase plan will be restarted (APP), with a monthly purchase amount of 20 billion euros, which means that the European Central Bank will restart QE.
In the resolution, the European Central Bank stated that in order to enhance the easing effect of policy interest rates, interest rate hikes will be considered after the asset purchase plan will be completed.
On the other hand, the ECB said that in any case, it is necessary to maintain favorable liquidity conditions and sufficient level of monetary easing.
Image source / Tuchuang Creative
In addition, in order to maintain favorable bank loan conditions, ensure the smooth transmission of monetary policy, and further support the loose stance of monetary policy, the ECB will change the new long-term targeted refinancing operation (TLTRO III). For banks that qualify for net loans exceeding the benchmark interest rate, the interest rates applicable in TLTRO III operations will be lower, as low as the average interest rate for deposit instruments that are prevalent during the operation. The duration of these actions will be extended from two years to three years. After the announcement of the
resolution, the euro rose 40 points against the US dollar and then quickly plunged more than 60 points.
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