AS IT IS 2016-03-12 EU Central Bank Moves to Help Economy

AS IT IS 2016-03-12 EU Central Bank Moves to Help Economy

The European Central Bank released a new round of measures to stimulate¹ the economy, including lowering interest rates more.

The financial moves announced Thursday are the latest efforts to lift the economy of the 19-country bloc² that uses the euro.

The European Central Bank, or ECB, cut all three of its main interest rates. The bank also increased its monthly financial asset-buying program.

Officials at the ECB hope banks will lend more money to businesses and consumers to help the region's economy.

The eurozone economy has had low economic growth for many years. Growth was 0.3 percent in the last three months of 2015.

The ECB’s cuts to three main interest rates it controls take effect on March 16. The rate for deposits with the central bank was cut further to negative 0.4 percent.

The negative interest rate means that depositors pay the bank instead of receiving interest payments. The unusual measure is meant to encourage banks to lend money rather than keep it with the central bank.

The ECB also said it would increase the purchase of bonds from 60 billion euros each month to 80 billion euros. The move puts more money into financial institutions that hold the bonds, putting more money into the Eurozone economy.

The measures are similar to tactics that the U.S. central bank used to boost the American economy during the 2008-2009 world financial crisis.

Since then, the U.S. economy has recovered. The unemployment rate now stands at 4.9 percent. However, central bank policymakers are dissatisfied with economic growth. Many workers are still looking for better-paying, full-time³ jobs rather than the part-time work they accepted.

However, slowing growth in China, the second-biggest global economy, is blamed for erratic⁴ stock market prices around the world. Chinese Premier⁵ Li Keqiang recently said China’s expected economic growth will be between 6.5 and 7 percent.

In the Eurozone, the jobless rate is down from its 2013 peak of 12.1 percent, but was still at 10.3 percent in January.

European Central Bank president Mario Draghi said the bank's new measures show "that we are not out of ammunition⁶."

He said, "Rates will stay low, very low, for a long period of time and well past the horizon of our purchases" of assets.

But he added, "Taking into account the support of our measures to growth and inflation, we don't anticipate that it will be necessary to reduce rates further."

Words in This Story

stimulus⁷ – n. an economic measure meant to cause growth; something that causes something else to happen

bloc – n. a group of people or countries linked by a treaty, agreement or common goals

asset – n. a valuable person or thing; something owned by a person or company that has value

erratic – adj. not regular, changing in ways that are not expected or usual

encourage – v. to make a person or group more determined⁸, hopeful or confident

anticipate – v. to expect and look ahead to something

1 stimulate   

vt.刺激，使兴奋；激励，使…振奋

参考例句：

• Your encouragement will stimulate me to further efforts.你的鼓励会激发我进一步努力。
• Success will stimulate the people for fresh efforts.成功能鼓舞人们去作新的努力。

2 bloc   

n.集团；联盟

参考例句：

• A solid bloc of union members support the decision.工会会员团结起来支持该决定。
• There have been growing tensions within the trading bloc.贸易同盟国的关系越来越紧张。

3 full-time   

adj.满工作日的或工作周的，全时间的

参考例句：

• A full-time job may be too much for her.全天工作她恐怕吃不消。
• I don't know how she copes with looking after her family and doing a full-time job.既要照顾家庭又要全天工作，我不知道她是如何对付的。

4 erratic   

adj.古怪的，反复无常的，不稳定的

参考例句：

• The old man had always been cranky and erratic.那老头儿性情古怪,反复无常。
• The erratic fluctuation of market prices is in consequence of unstable economy.经济波动致使市场物价忽起忽落。

5 premier   

adj.首要的；n.总理，首相

参考例句：

• The Irish Premier is paying an official visit to Britain.爱尔兰总理正在对英国进行正式访问。
• He requested that the premier grant him an internview.他要求那位总理接见他一次。

6 ammunition   

n.军火，弹药

参考例句：

• A few of the jeeps had run out of ammunition.几辆吉普车上的弹药已经用光了。
• They have expended all their ammunition.他们把弹药用光。

7 stimulus   

n.刺激，刺激物，促进因素，引起兴奋的事物

参考例句：

• Regard each failure as a stimulus to further efforts.把每次失利看成对进一步努力的激励。
• Light is a stimulus to growth in plants.光是促进植物生长的一个因素。

8 determined   

adj.坚定的；有决心的

参考例句：

• I have determined on going to Tibet after graduation.我已决定毕业后去西藏。
• He determined to view the rooms behind the office.他决定查看一下办公室后面的房间。