Rates to Stay Low Central Bank Says

LA TIMES:

European Central Bank (ECB) President Mario Draghi said the bank was ready to use “all available instruments” to keep market interest rates from rising and hurting a fledgling economic recovery.

He said the bank would “exclude no option,” such as a third round of cheap, long-term loans to banks. Draghi spoke after the bank left its benchmark rate unchanged at a record love 0.5%.

The U.S. Fedderal Reserve is considering scaling back its effort to keep bond market rates down. That has left to concerns that market rates might rise in Europe despite the record low ECB benchmark. Europe’s economy has just begun a recovery and still needs the support that low borrowing costs provide.

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