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The economic consequences of low interest rates | ECB - Oct. 2013 |

The key ECB policy rates are at a historical low. After being cut to 1% in May 2009, the interest rate on the main refinancing operation (MRO) has remained at low levels over the past four years. It currently stands at 50 basis points.

The main reason for maintaining highly accommodative monetary conditions has been to avert the risk of an economic depression and to counter deflationary pressures. At the same time, given the financial disruptions which led to what is now widely called "the Great Recession", the reduction of interest rates has helped to offset the excessive increase in borrowing costs caused by the widening of financial spreads. From this perspective, monetary policy actions have favoured borrowers.

How Europeans' household net worth is 'now exclusively driven' by negative interest rates | Business Insider - May 2019 |

Low interest rates makes saving up for retirement more expensive | policy Dutch Central Bank |

by Oui on Wed Oct 27th, 2021 at 06:16:16 PM EST
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