(Jack Ewing – New York Times)
The European Central Bank signaled deep concern about the state of the region’s economy Thursday when it unexpectedly reversed course and revived stimulus measures originally designed for times of crisis.
The move by the normally cautious bank to try to forestall recession showed how much trade tensions have reverberated through a slowing world economy while clouding the outlook for growth. The decision, coming amid a slowdown in China, also revealed how difficult it has been for much of the world’s central banks to return policy to normal a decade after the beginning of the global financial crisis.
The unanimous vote by the central bank’s Governing Council to start adding a stimulus measure intended to encourage lending, when it had only recently been taking it away, comes a little more than a month after the Federal Reserve suspended its plans to raise interest rates in the United States. Click here to read more.
- Video: ECB Press Conference
- ECB Is Showering Banks With Cash — and Forget About a Rate Hike (Financial Post)
- Stocks Fall for Fourth Straight Day as ECB Flashes Warning Signs (Yahoo Finance)
- ECB Pushes Back Rate Hikes as Mario Draghi Warns of Slowing Economy (CNN)
- Bank of Canada ‘Surprised’ by Sudden Slowing Economy, Rethinking Plan to Raise Rates (Globe & Mail)