Eurozone banks also promised extra liquidity as ECB follows in US Fed’s dovish footstepsThe European Central Bank has reacted to the threat of recession across the eurozone with a promise to keep interest rates at historically low levels for at least the rest of the year. The announcement came as the ECB sharply cut its eurozone growth forecasts for 2019 from 1.7% to 1.1%. Traders pushed down the value of the euro and increased the value of eurozone sovereign debt, as the prospect of low interest rates for a longer period become clear. The euro dropped to a three-week low and bank shares bounced back from the lows of last month. The interest rate it pays on its debts, which are the largest in Europe, were reduced by traders.

Source: The Guardian March 07, 2019 16:05 UTC