Borrowing money is effectively less costly for firms and consumers when central banks “pump money into the economy” concludes the European Central Bank (ECB) in a report published on Tuesday. Over the past few years, the ECB has implemented various exceptional measures aimed at, along with extremely low interest rates, boosting economic growth in the Eurozone. Through loans to banks and purchasing large-scale debt, the ECB has flooded the market with fresh currency.
According to the report, it seems that, thanks to this policy, banks are seeing their financing costs diminish. This is particularly viable for their customers, who enter into loan agreements on more favourable terms according to the ECB.
Oscar Schneider (Source: Belga)