European Central Bank (ECB) has reacted to the global economics slowdown that has impacted the European economy with the freezing of interest rates until 2020, in hopes of maintaining an inflation rate just below 2%.
Policy makers are concerned that troublesome times are around the corner with global trade and exports taking a hit, and Brexit causing headaches for the Eurozone’s economy.
Some say that the ECB has overreacted to slow economic growth, but several factors have come into play, including the reduced economic forecasts for Germany.
Germany is Europe’s third largest economy, which has been the main economic factor in Europe’s monetary recovery, but the EBC is worried because Germany is in a recession.
EBC’s economic stimulus package may be worrisome for industry officials, but Germany’s strong labor market, slight increase in government spending, and a variety of other factors give some hope that a recovery is underway.
Author: Adam Sarwar