Central Banks of Europe and England Pledge to Keep Rates Low for a While
Source: New York Times
Answering critics who said they were running out of ways to promote growth and lending, the European Central Bank and the Bank of England on Thursday did something neither had done before, committing themselves to keeping interest rates low indefinitely.
The bid to reassure investors brought the two central banks into closer alignment with the Federal Reserve, which, under Chairman Ben S. Bernanke, has adopted a policy of becoming more open about its intentions.
At the same time, they appeared eager to signal that they would not follow the Fed in preparing for a gradual withdrawal of economic stimulus.
Mario Draghi, the president of the European Central Bank, said at a news conference that crucial interest rates would “remain at present or lower levels for an extended period of time.” Until Thursday, the central bank had steadfastly refused to pin itself down on future policy.
Read more: http://www.nytimes.com/2013/07/05/business/global/central-banks-of-europe-and-england-pledge-to-keep-rates-low-for-a-while.html?pagewanted=all
