The European Central Bank changed tack on its tightening plan on Thursday, pushi...
FRANKFURT - The European Central Bank changed tack on its tightening plan on Thursday, pushing out the timing of its first post-crisis rate hike until 2020 at the earliest and offering banks a new round of cheap loans to help revive the euro zone economy.
The bolder-than-expected move came as the U.S. Federal Reserve and other central banks around the world are also holding back on rate hikes. It underlined how a global trade war, Brexit uncertainty and simmering debt concerns in Italy are taking their toll on economic growth across Europe. Whereas the bank had previously said rates would remain at their record low levels through the summer, it said it now expected them to stay there “at least through the end of 2019”.
“We are a period of continued weakness and pervasive uncertainty,” Draghi told a news conference as he announced cuts to the bank’s growth and inflation targets.
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