September 16, 2019
The European Central Bank (ECB) has launched a new round of monetary stimulus to give the economy a boost in the face of global uncertainties like the US-China trade conflict and Brexit.
The central bank, which acts for the 19 countries that use the euro, sparked the anger of US President Donald Trump when it revealed plans to cut the rate on deposits it takes from banks to minus 0.5 per cent from minus 0.4 per cent.
That is a penalty rate that pushes banks to lend excess cash, but was a smaller cut than the market was hoping for.
Trump took the move as a cue to lash out at the US Federal Reserve on Twitter.
‘European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the Very strong Dollar, hurting U.S. exports…. And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!’ he said.
It marks the second time this year that the US president has accused the ECB of unfairly driving down the euro.
Trump has long been urging the Fed to slash rates, but the US organisation has for the most part resisted.
This article was posted: Monday, September 16, 2019 at 4:23 am