The ECB lowered its rate to 0% for the first time.

[sen-no-sen]

European Central Bank Director Mario Draghi of Italy has announced several measures to combat low inflation and encourage banks to extend more credit.
"Big artillery", "monetary bazooka", or even "the ECB hits hard". The headlines of the press and the Web are not lacking in superlatives to evoke the series of measures which aim to fight against inflation which is too low and to revive growth. Announced Thursday, March 10 by the director of the European Central Bank (ECB) Mario Draghi, they had the effect of an electric shock.

The Italian had promised in December to "carry out a full review of the monetary stance" of the ECB in March, and he did not miss this meeting. Its most emblematic measure was to lower the main key rate, that of bank refinancing, to 0% for the first time in the history of the monetary institution. In other words, financial institutions do not have to repay interest. In addition, the ECB also cut its two other major rates.

Little revolution

Mario Draghi then announced that the European Central Bank was going to increase its monthly debt buyback program from 60 billion to 80 billion euros per month. Small revolution: the institution will no longer be limited, from April, to debts issued by states, it will also be able to acquire securities issued by companies deemed to be of "good quality".

Finally, the institution based in Frankfurt has reduced, as expected, the rate of its deposit facility to -0,4% against -0,3% so far. That is to say, the ECB charges banks that decide to deposit money in its coffers ... thus encouraging them to use the funds rather to grant credits.

"The ECB has done more than meet all expectations. In the end, it does better than what the consensus expected", commented Nicolas Chéron, of CMC Markets France. All these measures must be used to fight against too low inflation and to encourage banks to invest in the real economy at attractive rates.

http://www.france24.com/fr/20160310-bce-baisse-principal-taux-zero-banque-economie-europe-draghi-inflation

The logical continuation of all this:negative interest loans: or pay people to borrow!

[Ahmed]

Negative interests are unlikely to be much different from zero, otherwise a preference for liquidity would prevail. However, these trends, which are not peculiar to Europe, testify to the absence of projects likely to justify investments up to the level of the mass of accumulated capital. Lowering the rates means pressing the accelerator, which does not change anything if the pedal is blocked ...
At this point, only a massive destruction of capital or real property could revive the process of destruction of living conditions on earth (in the sense of an increase in it), without which the question of survival of a genetically programmed system for continuous growth.

[moinsdewatt]

It is the saver who is going to hide.

'The ECB pays the welfare state'

11 / 03 / 16 levif.br

The monetary measures of the European Central Bank are an acknowledgment of the unsustainable nature of public debts. States have therefore found a compliant creditor for their own refinancing at a zero or even negative rate.
....................

http://trends.levif.be/economie/banque- ... 77415.html

[Christophe]

States have therefore found a compliant creditor for their own refinancing at a zero or even negative rate.

FALSE!!! Poisoning and manipulation !!!

States can no longer borrow directly from central banks from 1974 and have to go through commercial banks (which take 100% interest by borrowing them at 0 rates from the ECB!)!

See the Pompidou Giscard law for France: economy-finance / crisis-of-the-debt-to-back-on-the-law-Pompidou, Giscard-1973-t11038.html (It has its equivalent everywhere else in Europe ...)

The journalists are really big but big nazes at the balances of the financial powers!

Unless the law has changed ????? If so, all the better ... but I very much doubt it !!!

[Ahmed]

We will say that it is a journalistic shortcut ...

[Christophe]

The logical continuation of all this:negative interest loans: or pay people to borrow!

Japan has just put in place the negative interests ...
I announced it here: economy-finance / the-rate-of-interest-negative-come-t14543.html

[Christophe]

We will say that it is a journalistic shortcut ...

For eye !!! Rather intellectual scam and manipulation of people ..

These same journalists sold will only have to explain to people in 2017 why the interest on the debt will have continued to increase at 0 rate !!!

[Remundo]

simply because they were subscribed by the states at positive rates ... proposed by the private banks, which receive the ECB's almost zero-rate billions.

[sen-no-sen]

The logical continuation of all this:negative interest loans: or pay people to borrow!

Japan has just put in place the negative interests ...
I announced it here: economy-finance / the-rate-of-interest-negative-come-t14543.html

Yes it has already started, and it's bad news, it's only a method for force people to consume ...

Ahmed you write:

However, these trends, which are not peculiar to Europe, testify to the absence of projects likely to justify investments up to the level of the mass of accumulated capital. Lowering the rates means pressing the accelerator, which does not change anything if the pedal is blocked ...

Indeed, this is only a question of mopping up the massive injections of fictitious liquidity issued since 2008 ...

[Christophe]

simply because they were subscribed by the states at positive rates ... proposed by the private banks, which receive the ECB's almost zero-rate billions.

Not almost ... zero anyway from now !!
So yes, that's the way it works: only the keen journalist claimed the opposite by saying that states could borrow at 0 rates now ...

Such a mistake, given the interests at stake for the peoples: I think it's a serious mistake for a journalist ... we punished for less than that!