The ECB will not move interest rates – The Economist

Asked what would the bank at year end, a large majority of economists said it would expand its program of bond purchases beyond the deadline for completion in March 2017.

the European Central Bank (ECB) would keep its monetary policy on 8 September and would probably respond to the pressure of more monetary easing, announcing an extension of its program of asset purchases year-end, according to a Reuters poll.

the bank, which aims to bring inflation close to but below 2%, has been buying government bonds for more than a year, worth 80,000 million euros per month, and has reduced its refinancing rate to zero, in addition to negative territory out its deposit rate.

The central bank also has been providing hundreds of billions of euros in loans virtually free to commercial banks, as long as financial institutions commit to provide some of that money to their customers.

But despite all these measures, the August inflation in the euro zone was just 0.2%, well below the target, and there was a return to modest economic growth of 0.3% quarterly, with varied performances among the countries of the region.

so far, there are few signs that the impact of the British vote June for his departure from the European Union has had a real effect on the economy of the euro area’s main trading partner in the UK, at least strong enough to generate revisions in forecasts of the ECB .

so, the bank remain stable monetary policy when the Governing Council meets next Thursday.

the consensus also showed that the ECB would hold rates refinancing and deposit zero and -0.4%, respectively, until the end of 2017.

Asked what would the bank at year end, a large majority of economists said it would expand its bond-buying program beyond time limit for completion in March 2017.

in March, the institution chaired by Mario Draghi lowered interest rates for the first time since September 2014, to 0.0% from 0.05% in that were

a negative rate means that banks have to pay interest on the ECB to deposit their money in the bank one day and thus sought that provide the private sector.; It also helps to curb the appreciation of the euro

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