BUSINESS

ECB measures to have little local impact

By Yiannis Papadoyiannis

Senior local bank officials describe the European Central Bank measures on Thursday aimed at tackling deflation and low growth in Europe as particularly important. However they emphasize that no one should expect Greece’s cash flow to suddenly increase as a result.

Beyond the small reduction in the ECB’s baseline interest rates, the other measures are not expected to have a direct impact on local banks or the domestic economy in general.

The bank officials commented that the biggest problems that the eurozone is currently facing are deflation and low levels of growth, which in some countries have evolved into recession, while their combination has generated worries about a possible “Japanization” of the eurozone, with the stagnation of the economy and the markets.

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