The European Central Bank decreased the refinancing rate from the current 0.05 per cent to zero. About it reports The Guardian. Deposit rate, in turn, fell to minus 0.4 per cent, having gone even further in negative territory.
In addition, the ECB decided to expand its quantitative easing program from 60 to 80 billion euros per month. Within its framework he will be able to purchase the balance not only the public debt of the Eurozone countries, but also corporate bonds with an investment grade rating.
The ECB also announced the introduction of an additional assistance program to banks called targeted ltro program. It will run for four years, and in the framework of a credit institution will be able to take the regulator funds under an extremely low rate. In theory it can achieve the same by only 0.4%.
The Euro during the trading session in the global currency market fell by percent, to 1,097 1,086 dollar on news of the rate reduction.
In January the U.S. Federal reserve at the next meeting, left its benchmark rate unchanged. 16 December 2015 the fed has raised the base rate to the level of 0.25-0.5 per cent. Before that the rate was at the level of 0-0,25 per cent was the lowest figure in U.S. history, which lasted for seven years, since December 2008.
