Forward guidance from the European Central Bank notes that interest rates in the eurozone will stay put at 0.15% for an “extended period of time in view of the current outlook for inflation”.
To this end, review meetings will take place only every six weeks beginning next January instead of every month.
In June the bank cut its deposit rate from zero to -0.10% and its benchmark rate from 0.25% to 0.15%.
The move sought to encourage banks to lend more to businesses and help promote economic growth which has been flagging in recent months.
The average inflation for the region is 0.5% which ECB president Mario Draghi called “the danger zone” of below 1%.
Economists fear the whole area could join Portugal and Greece in regressing into deflation which would further inhibit consumers from spending.
