{"id":44309,"date":"2019-03-08T09:09:18","date_gmt":"2019-03-08T14:09:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44309"},"modified":"2019-03-08T09:09:21","modified_gmt":"2019-03-08T14:09:21","slug":"ecb-warns-slowdown-isnt-temporary-draghi-announces-bold-stimulus-plan","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44309","title":{"rendered":"ECB Warns Slowdown Isn’t Temporary: Draghi Announces Bold Stimulus Plan"},"content":{"rendered":"\n

ECB Warns Slowdown Isn’t Temporary: Draghi Announces Bold Stimulus Plan<\/a><\/h3>\n\n\n\n
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Mario Draghi surprised even the doves with his bold new stimulus plan. It won’t help one iota.<\/p>\n\n\n\n

The Wall Street Journal reports ECB Reverses Course With New Stimulus Measures<\/a>.<\/p>\n\n\n\n

The European Central Bank made a major policy reversal Thursday, unveiling plans for fresh measures to stimulate the eurozone\u2019s faltering economy less than three months after phasing out a \u20ac2.6 trillion ($2.9 trillion) bond-buying program, making it the first rich-country central bank to ease policy in response to the global slowdown.<\/p>

The ECB said it would hold interest rates at their current levels at least through the end of this year\u2014months longer than previously signaled\u2014and announced plans for a fresh batch of cheap long-term loans for banks. The first loans will be launched in September, each with a maturity of two years.<\/p>

Despite the new stimulus, ECB President Mario Draghi said that the risks to the economy remain prevalent, though the likelihood of a recession is very low. Thursday\u2019s decision was unanimous, he said at a press conference. \u201cGiven the complexity of the package, I think this is a very positive sign,\u201d he added. The ECB also slashed is forecast for gross domestic product growth this year to 1.1% from 1.7% in December. It lowered its inflation projection to 1.2% from 1.6%, further below the ECB\u2019s target of just under 2%.<\/p>

Still, the ECB refrained from more extreme measures such as restarting its bond-buying program or cutting its deposit rate further from minus 0.4%. These options weren\u2019t discussed, Mr. Draghi said. \u201cIn a dark room, you move with tiny steps,\u201d he said.<\/p><\/blockquote>\n\n\n\n

Bold New Plans<\/strong><\/p>\n\n\n\n

Please consider ECB’s Draghi Surprised Colleagues with Bold Stimulus Plans<\/a>.<\/p>\n\n\n\n

European Central Bank President Mario Draghi caught even dovish rate-setters off guard by pushing on Thursday for unexpectedly generous stimulus after forecasts showed a large drop in economic growth, four sources familiar with the discussion said.<\/p>

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 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

ECB Warns Slowdown Isn’t Temporary: Draghi Announces Bold Stimulus Plan Mario Draghi surprised even the doves with his bold new stimulus plan. It won’t help one iota. The Wall Street Journal reports ECB Reverses Course With New Stimulus Measures. The European Central Bank made a major policy reversal Thursday, unveiling plans for fresh measures to stimulate […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[233,282,1044,14648,13390,535],"class_list":["post-44309","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ecb","tag-european-central-bank","tag-mario-draghi","tag-michael-shedlock","tag-mishtalk","tag-monetary-stimulus"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44309"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44309\/revisions"}],"predecessor-version":[{"id":44310,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44309\/revisions\/44310"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}