Monetary policy decisions, September 2014

The European Central Bank cut its benchmark interest rate to 0.05% in September 2014, and introduced new stimulus measures.

In its Main Focus for the 5 September 2014 of media reaction across Europe, Euro|Topics observed that ECB President Mario Draghi explained the measures pointing to the low levels of growth and inflation in the Eurozone. Cheap money would help the crisis-hit countries, some commentators wrote approvingly. Others feared that the decision would result in a gigantic mountain of debt.

Reports were published in mid-September saying that the bank-funding programme designed to stimulate the eurozone economy had seen a low initial take-up by banks.

• Primary Source

BBC News, 04.09.14: ECB cuts eurozone rates and launches stimulus programme http://www.bbc.co.uk/news/business-29063348

ECB: Press Release, 04.09.14: Introductory statement to the press conference, Frankfurt, 04.09.14 https://www.ecb.europa.eu/press/pressconf/2014/html/is140904.en.html

EUObserver, 05.09.14: [Opinion]: The ECB: An act of determination or desperation? http://euobserver.com/opinion/125481

EUObserver, 04.09.14: Draghi cuts interest rate, launches new stimulus measures http://euobserver.com/news/125473

ESO: Background information: Monetary policy decisions, August 2014 http://www.europeansources.info/record/monetary-policy-decisions-august-2014/

Euro|Topics: Main Focus, 05.09.14: Draghi unexpectedly cuts interest rates http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER149921-Draghi-unexpectedly-cuts-interest-rates

ESO: Background information: Berlin-Paris tensions re-emerge as ECB ponders stimulus http://www.europeansources.info/record/berlin-paris-tensions-re-emerge-as-ecb-ponders-stimulus/

Deutsche Welle, 04.09.14: ECB cuts rates, launches asset purchases http://dw.de/p/1D6Rh

The Guardian, 04.09.14: ECB cuts rates in surprise move to help boost flagging eurozone http://www.theguardian.com/business/2014/sep/04/ecb-cuts-rates-help-eurozone-economies

Deutsche Welle, 04.09.14: ECB monetary moves rock markets http://dw.de/p/1D7KI

The New York Times, 04.09.14: Europe’s Bank Takes Aggressive Steps http://www.nytimes.com/2014/09/05/business/international/ecb-cuts-interest-rate-further-paving-way-for-more-drastic-measures.html

Blog: Open Europe, 05.09.14: ECB surprises markets with interest rate cut and purchases of private assets: Round-up of reactions from around Europe http://openeuropeblog.blogspot.co.uk/2014/09/ecb-surprises-markets-with-interest.html

EurActiv, 05.09.14: ECB rate cut boosts Spanish, Italian yields http://www.euractiv.com/sections/euro-finance/ecb-rate-cut-boosts-spanish-italian-yields-308250

EurActiv, 19.09.14: Banks repay bailout loans to ECB, hurting lending to businesses http://www.euractiv.com/sections/euro-finance/banks-repay-bailout-loans-ecb-hurting-lending-businesses-308589

BBC News, 18.09.14: ECB bank-funding programme sees low take-up http://www.bbc.co.uk/news/business-29254589

Spiegel Online international, 24.09.14: German Central Bank Head Weidmann: 'The Euro Crisis Is Not Yet Behind Us' http://www.spiegel.de/international/business/interview-with-bundesbank-head-jens-weidmann-on-euro-crisis-and-ecb-a-993409.html

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