Christine Lagarde, President of the European Central Bank, kept the central bank’s monetary easing policy unchanged according to her speech at the press conference last Thursday. In addition, the central bank’s Twitter account recently shared a video of Lagarde defending negative interest rates, as the bank’s president stressed that they “support companies and people in the Eurozone”.
Christine Lagarde, President of the European Central Bank, wants to retain favorable financing
Since the convening of Covid-19, many central banks have adopted loose monetary policies and lowered interest rates to zero or lower. On Thursday, Lagarde spoke at a press conference after the European Central Bank (ECB) decided to keep its policy unchanged after keeping interest rates below zero and issuing many orders. Lagarde said that financing conditions must be maintained to withstand the economic impact of the global pandemic.
European Central Bank President Lagarde emphasized to the press on Thursday: “Maintaining favorable financing conditions during the pandemic is still essential to reduce uncertainty and increase confidence, thereby supporting economic activity and maintaining medium-term price stability. “
The European Central Bank also said last month that the central bank is planning to increase purchases of government bonds, and data shows that the bank is doing just that. Statistics from Deutsche Bank show that the European Central Bank acquired 74 billion euros in bonds in March after purchasing only 5.3 to 60 billion euros of bonds in the first two months of 2021. .
The European Central Bank said at a press conference last week: “The Board of Governors expects that this quarter’s purchases under PEPP will continue at a much greater rate than in the first few months of this year.
Lagarde spoke of the dissatisfaction of depositors, “We have to look at the entire economy”
Furthermore, on April 23, the official Twitter account of the European Central Bank wanted the public to “watch” a video in which Lagarde defended negative interest rates. Video tweet. The ECB account said: “President Lagarde responded to the criticism of negative interest rates and described how they support companies and people in the Eurozone.” In the video, Lagarde does defend negative interest rates because she believes Negative interest rates are good for those in need.
Lagarde said in the video: “I am totally grateful that savers are dissatisfied with the negative consequences of negative interest rates, but we must look at this situation from a global perspective.” “We cannot look at specific depositors or specific categories. , And we must look at the entire economy.”
Lagarde further added:
And we know that by implementing these negative interest rates, we have effectively supported the economy, encouraging businesses, families, families, and young couples to actually borrow and invest at very low interest rates… In order to purchase their first apartment, in order to purchase some equipment, You know that donating money will ensure you keep your job. In order to ensure that enterprises can continue to operate and produce, it is obviously a trade-off. Aimed at certain aspects hated by those who are only savers rather than borrowers.
To say the least, the European Central Bank’s tweets are not progressing well on Twitter because of the controversial comments made by Lagarde. “Of course, don’t incentivize depositors, but encourage borrowers,” one person Reply To tweet.The person added: “The only way to ensure that the slave society is firmly in place.” Another person Respond to: “The frenzied respite of the drowning system. The savings/borrowing/interest rate/tax leverage used to guide capitalism is very good.”
Individuals who comment on slave society Emphasized:
Yes it is. The balance is now completely exhausted. I don’t know what the final result will be, but it won’t be very beautiful. For us anyway.
What do you think of Largade’s comments on negative interest rates and depositors’ dissatisfaction? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear any direct or indirect responsibility for any damage or loss caused or allegedly caused by using or relying on any content, goods or services mentioned in this article or related thereto.