Tuesday , August 16 2022

Uncertainty affects the economy of the eurozone



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The European Central Bank (ECB) considers long-term loans for banks.

The uncertainty that affects the growth of the eurozone economy has been on the recent increase, which means that the bank could take a further stimulus, probably in the form of a package New long-term bank loan. He showed on a published record on Thursday of the last bank management meeting at the end of January.

ECB officials are worried that the slowdown in the growth of the eurozone economy could be "deeper and more extensive than what was originally anticipated." The biggest concern is the defense and increasing disputes between the United States and China, which could lead to new import duties. slow down the growth of world trade and the economy.

In the January session, the ECB kept the unchanged key interest rate, but said that the risks to economic growth were increasing. In December, the bank terminated its asset purchase program, where he bought government bonds worth around 2.6 trillion euros over the past four years.

Analysts expect the bank to defer the next increase in interest rates in such circumstances, which is forecast for the summer. Analysts say that the increase could be moved to 2020.

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