Central Banks in Europe Move to Support Economy

[alp227]

Source: The New York Times

BERLIN — The European Central Bank moved Thursday to help European banks that are having trouble raising short-term cash, while the Bank of England decided to resume its bond purchases to help support a slowing British economy.

Both central banks left their key benchmark rates unchanged, at 1.5 percent for the euro area covered by the E.C.B., and 0.5 percent for Britain.

Some analysts had seen a rate cut as a possibility for the euro zone amid growing concern that Europe could again dip into recession. But the E.C.B. has remained steadfastly focused on inflation, which rose again in September.

It did respond, however, to signs that some big banks that are having trouble raising funds at reasonable rates, because other lenders doubt their creditworthiness due to their exposure to shaky government debt.

Read more: http://www.nytimes.com/2011/10/07/business/global/bank-of-england-to-resume-stimulus-measures.html?pagewanted=all

[angstlessk]

1. has 'Economy' become code for rich bankers?

[Celefin]

2. Pretty much used synonymously by now, yeah. -nt-