The European Central Bank took unexpectedly quick action on Thursday to support a slowing economy, joining the U. S Federal Reserve and Chinese leadership in their attempts to counter worries about global growth.
FRANKFURT, Germany — The European Central Bank took unexpectedly quick action on Thursday to support a slowing economy, joining the U. S Federal Reserve and Chinese leadership in their attempts to counter worries about global growth.
The central bank for the 19 countries that use the euro pushed back the earliest date for an increase in interest rates from current record lows. It said rates would stay unchanged at least until year-end — previously, it had said until the fall.
The ECB also said it would offer a series of ultra-cheap loans to banks, supporting their ability to keep lending to businesses.
The moves appear to signal concern that the weakness in economic growth could be more than a blip and threatens to turn into a more lasting downturn.
A trade war between the U. S. and China, the world’s largest economies, has hurt international commerce and manufacturing. Britain’s exit from the European Union could further damage business activity. U. S. President Donald Trump, meanwhile, has threatened to put tariffs on auto imports that would hit European automakers hard.
Amid doubts about the extent of the economy’s slowdown, President Mario Draghi said, it was important to take action.
