The decision by the ECB to lower interest rates will help to spur growth in the short term. It should prevent a near term recession. It is just kicking the can down the road though, as every economic cycle will include a recessionary term. It will happen, just later now that it would have occurred.
The EBC cut it's interest rate, and therefore is paving the way for banks to lend more to businesses rather than just sit on their money. By lowering the interest rate, it makes it much more attractive for people to borrow money rather than save; The borrowed money will then be spend on goods and services to kick start the economy.
Yes, I always think lowering interest rates helps out allot. I think the ECB knows what it is doing here and can really help the European economy overall. I love the way things are going for the region I think they will get back on their feet very soon. The decision is a good one.
It's about time when ECB took some measures to fight recession in Europe. It will take time to heal the situation but it's takes economy to tackle the problem of recession. It means people can take loans from bank at lower interest rate, this helps to increase purchasing power of people. There will be flow of money which help to improve recession.