Berenberg Bank chief economist Holger Schmieding told DW the ECB's negative interest rate policy may support lending in the eurozone and punish banks which sit on their money.
The European Central Bank looks has removed a key pillar of its support for the euro area economies. At their final policy meeting this year, ECB governors announced the end of their bond-buying program.
The ECB's purchase of government bonds was an attempt to save countries such as Greece, Spain and Portugal from default. It was particularly controversial in Germany, where multiple lawsuits challenged its legality.
We don’t know if the rumors that Italy's PM checks Italian-German bond yield spreads several times a day are true. But as the ECB ends stimulus and Rome refuses to budge on its budget, he might want to start.
The European Central Bank has left interest rates and massive support for the eurozone economy unchanged, despite sharp upgrades to the bank's growth forecasts. But inflation will remain stubbornly low, the ECB says.
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