The post There is still scope for further policy easing, the extent is up for debate appeared on BitcoinEthereumNews.com.

Member of the European Central Bank (ECB) Governing Council and Bank of France Governor Francois Villeroy de Galhau said late Tuesday that there is still room to lower interest rates further, and the 2.5% deposit rate could fall to 2% by the end of the summer, per Reuters.  Key quotes I believe there is still scope for further easing. However, the pace and extent remain open.  Seen from today, markets expect an ECB interest rate of around 2% in the summer. It is a possible scenario, considering that summer in Europe lasts from June till September. All other things being equal, this rise in long term yields means a tightening of financial conditions, which we have to incorporate in our monetary assessment. Market reaction At the time of press, the EUR/USD pair was up 0.18% on the day at 1.0787.  ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is…

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Filed under: News - @ March 26, 2025 12:22 am