New figures show the extremely low interest rate held by the European Central Bank has cost German savers a bundle. But Germany’s central bank counters that it’s inflation, not interest, that matters to the ever-prudent German saver.
Germany's constitutional court has called into question the European Central Bank's asset purchases, saying they might overstep the central bank's powers, referring the case instead to the European Court of Justice.
ECB chief Mario Draghi is expected to highlight the euro area's strengthening economy while underlining the need for caution as the bank inches toward ending its stimulus. But interest rates will not rise anytime soon.
For nine years, interest rates have fallen and the European Central Bank has fired up the economy with a flood of money. It is becoming increasingly clear that this cannot last forever.
The European Central Bank (ECB) has indicated it won't cut interest rates any further as the eurozone economy is improving. But it will continue to pump more stimulus into the bloc amid subdued inflation.
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