QUOTE
First, based on our regular economic and monetary analyses, we decided to lower the
interest rate on the main refinancing operations of the
Eurosystem by 25 basis points to 0.50% and the rate on the marginal
lending facility by 50 basis points to 1.00%. The rate on the deposit
facility will remain unchanged at 0.00%. These decisions are consistent
with low underlying price pressure over the medium term. Inflation
expectations for the euro area continue to be firmly anchored in line
with our aim of maintaining inflation rates below, but close to, 2% over
the medium term. In keeping with this picture, monetary and loan
dynamics remain subdued. At the same time, weak economic sentiment has
extended into spring of this year. The cut in interest rates should
contribute to support prospects for a recovery later in the year.
Against this overall background, our monetary policy stance will remain
accommodative for as long as needed. In the period ahead, we will
monitor very closely all incoming information on economic and monetary
developments and assess any impact on the outlook for price stability.
UNQUOTE
Opinion
Whatever they do, it does not help. Given the sluggish economy all over the EU, this interest rate manipulation will never reach scared people about to freak out because of austerity. The shock of austerity will lead to keep the money safe. This even out of the banks because the governments are not to be trusted any more. Savings above EUR 100'000 were not safe in Cyprus. Are they safe anywhere else. The faults of the politicians are to be paid by the people. Thus the latter have to take appropriate measures.
copyright thomas ramseyer
