Nissan to lay off thousands of workers as sales drop    Trump picks Susan Wiles as White House chief of staff    Three charged in connection with Liam Payne's death    Israel passes law to deport relatives of attackers, including citizens    Monkey mayhem in South Carolina after 43 primates escape research facility    Russian anti-war teenager faces five years in jail after failed appeal    Uproar in Ghana after president unveils his own statue    BD and INS partner to elevate standards of infusion care in MENAT    Qassim emir launches 52 health projects costing a total of SR456 million    Dubai Design Week launches its 10th edition, celebrating creativity and innovation    Fakeeh Care Group reports 9M-2024 net profit of SR195.3 million, up 49% y-o-y driven by solid revenue growth and robust profitability    GASTAT: Passengers of public transport bus and train soar 176% and 33% respectively in 2023    HRT does not impact life expectancy — UK health body    Liam Payne's body to be flown back to the UK    Arab leaders and heads of state congratulate US President-elect Donald Trump    Neymar suffers muscle tear, out for 4-6 weeks    Suspect arrested for banking fraud totaling SR493 million as Nazaha pursues corruption charges    Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



ECB slashes interest rates further
Published in The Saudi Gazette on 03 - 04 - 2009

The European Central Bank could cut interest rates further and resort to alternative measures to fight the economic crisis after trimming the benchmark rate to its lowest point since World War II, its President Jean-Claude Trichet said Thursday.
Although the quarter point cut to 1.25 percent on Thursday was smaller than most analysts had predicted, Trichet said he did not exclude that “in a very measured way, that we could go down from the present rate.” He said the world and the euro zone - which, with 330 million citizens, accounts for over 15 percent of the global economy - are in the midst of a severe economic downturn.
“Both global and euro area demand are likely to remain very weak over 2009 before gradually recovering in the course of 2010,” Trichet said.
He also said the central bank for the 16 nations that use the euro would provide details about plans for more “nonstandard measures” aimed to get banks to lend to each other. These could include the purchase of assets from banks to boost the amount of money in the economy, which both the Federal Reserve and Bank of England are doing.
“We have (already) taken a number of decisions that are nonstandard,” such as the bank's unlimited liquidity provision at fixed rates and its expansion of the collateral it accepts on financing, Trichet said.
Any decisions on other alternative measures would be discussed at the next meeting, he said.
“I know that I will have 100 questions: will it be this or this or that?” Trichet said. “Last time I told you ‘If and when.' Now I can tell you when: When is next time. No details. Details next time. Full details next time.” Analysts said that the ECB's decision left markets disappointed, but that Trichet set the stage for what Marco Annunziata, chief economist of UniCredit Group, called a “big bang” in May.
“I now expect a big bang move at the May meeting, with another - final - 25 basis point cut in the refi rate, a lengthening of liquidity operations to 12 months, and the launch of outright purchases of private sector assets, likely including financials and corporate bonds and commercial paper, but not sovereign bonds,” he said in a research note. Other observers were cheered by the ECB's move.


Clic here to read the story from its source.