The European Central Bank (ECB) has reduced interest rates for the sixth time in nine months while it seeks to strengthen economic growth in the euro zone.
The bank respected its rate of drop in rates in the face of economic challenges, including threats to American prices and plans to stimulate European military spending.
Inflation approaching its target by 2%, the ECB reduced its main interest rate by 2.75%to 2.5%.
He indicated that interest rate reductions “make new loans cheaper for businesses and households”.
The ECB is faced with a number of challenges to come when it tries to obtain inflation at its 2%target.
The economy of the euro zone can suffer from it if the Trump administration goes ahead with the plans to impose “reciprocal prices” on each country which imposes imports to us.
And in the euro zone, Germany’s decision this week to increase military and infrastructure spending could stir up inflation.
Political parties in talks to form a new government plan to pay this by loosening the tax rules of Germany, increasing the prospect of a sharp increase in debt.
In response, German more long -term obligations have seen their biggest sale in years on Wednesday, and the euro jumped at its highest level in almost four months, while shares have also rebounded.
Thursday, borrowing costs of the British government also increased after the German sale.
