Economics
ECB Signals Rate Cut, QE as Global Stimulus Push Picks Up
- Governing Council changes policy language to prime for easing
- U.S. Federal Reserve widely expected to lower rates next week
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The European Central Bank sent its strongest signal yet that monetary support for the euro-area economy will be stepped up after the summer break, with lower interest rates and renewed asset purchases on the table.
President Mario Draghi and fellow policy makers said on Thursday they expect borrowing costs to stay at present levels “or lower” through at least the first half of 2020, opening room for a September reduction in the deposit rate from the record low of minus 0.4%. Officials also signaled they will restart their bond-buying program if needed.