Thursday, May 2, 2013
ECB Cuts Rate
The ECB, as widely expected, has cut its main interest rate by 25 basis points to 0.5 percent. This is a reaction to the austerity-induced recession that is currently afflicting Europe. It will not accomplish much. Read it as a gesture: "We care," or, rather, "We're not entirely oblivious to your suffering, but we still believe in our nostrums, our mandate limits what we can legally do, and in any case it's not up to us to bail out feckless politicians and the clueless citizens who elect them." Translated from CentralBankerspeak.