The deposit rates can be 2 % by this summer

The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank places interest rates and runs the region’s monetary policy. The state of the European Central Bank is to maintain price stability, which means maintaining inflation by approximately 2 %. Its primary performance is by raising or lowering interest rates. Relatively high interest rates usually lead to the most powerful euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.

In maximum situations, the European Central Bank can enact a policy tool called quantitative mitigation. QE is the process that the European Central Bank prints and uses to buy assets – usually government or companies – from banks and other financial institutions. QE usually leads to the weakest euro. Ken is the last resort when it is unlikely to achieve interest rates simply the goal of stabilizing prices. The European Central Bank used it during the great financial crisis in 2009-11, in 2015 when inflation remained stubborn, as well as during the roaming epidemic.

The quantitative tightening (QT) is the opposite of QE. It is implemented after QE when the economic recovery is ongoing and inflation begins to rise. While in QE, the European Central Bank (ECB) purchases government bonds and companies from financial institutions to provide them with liquidity, in QT, the European Central Bank stops buying more bonds, and stops investing the manager on the bonds that he already holds. It is usually positive (or bullish) for the euro.