ECB cut shows weakness of euro economy
Japan has had a zero interest rate policy for some years. US rates are close to zero and will remain so for some time if the Federal Reserve is to be believed. UK rates are at 0.5%, and ECB rates have been at 0.5% for some time, and yesterday were taken down to a new record low of just 0.25%.
These levels may look positive for borrowers, but the economic reality is that these historically and artificially low levels reflect the economic difficulties policymakers have struggled with since 2007. In general, low interest rates reflect economic difficulties and rising rates reflect economic growth.
