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European Central Bank Interest Rate Return Focus


For the first time in months, the European Central Bank to refocus on interest rates. Being discussed, whether to cut interest rates to support the European economy on the brink of recession.

A month after launching the bond-purchase program that may not be limited, according to research Investindo Futures Monex, in Jakarta, Wednesday (03/10/2012), not much else to do the ECB about the euro zone debt crisis. One of the things to do is wait for Spain to ask for help in reducing the high yield bond.

ECB officials have indicated concerns about the euro zone inflation, which is still above the target or slightly below 2 percent. This is to convince financial markets that they would refrain from cutting interest rates already at a record low 0.75 percent. But after a number of European bloc countries fall into recession this year, the opportunity is expected to remain substantial additional stimulus. Economists began debating whether the ECB to change interest rates become negative as in Switzerland and Japan.

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