ECB extends historic low rates, details cheap bank loans

European Central Bank (ECB) governors on Thursday agreed to hold key interest rates at historic lows until at least mid 2020, a spokesman confirmed, adding at least six months to a key policy for stimulating growth and inflation as clouds loom over the 19-nation eurozone.
The ECB's main refinancing rate remains at zero, while financial firms must pay a negative interest rate of 0.4 per cent on deposits with the central bank.
The ECB spokesman added that the Frankfurt institution would offer highly favourable interest rates to banks in a third round of a massive lending scheme known as TLTRO.
If lenders in turn provide enough credit to the wider economy, the ECB could offer interest as low as -0.3 per cent -  in effect paying them to borrow money.
President Mario Draghi is now in the spotlight to outline yet further steps the Frankfurt-based institution could take to combat uncertainty over future growth and inflation in the 19-nation eurozone at a press conference in Vilnius.

"Market participants will turn to Mario Draghi for any new hint at how exactly all (the) ECB's instruments could be implemented, if needed," said Frederik Ducrozet, a strategist at Pictet Wealth...