Business World

Sunday 21 September 2014

ECB interest rate cut boosts German consumer confidence

Published 25/06/2014 | 08:52

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European Central Bank President Mario Draghi
European Central Bank President Mario Draghi

Consumer confidence in Germany is rising again, thanks to the recent interest rate cut by the European Central Bank.

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The ECB recently cut interest rates to just 0.15pc and launched a series of measures to pump money into the sluggish eurozone economy.

"The cut in rates by the ECB and the decision to charge banks for parking their money at the bank has given the consumer climate an extra boost and is the main reason behind the rise in consumer confidence," market research company GfK said in a statement.

"These decisions have hit Germans' propensity to save. And the increase in their willingness to spend money is also partly attributable to the ECB moves," it said.

GfK's household confidence index is now expected to rise to 8.9 points in July from 8.6 points in June following months of stagnation.

 

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