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  3. The European Central Bank left its main interest rate unchanged Wednesday, choosing to put the onus on political leaders to addr

The European Central Bank left its main interest rate unchanged Wednesday, choosing to put the onus on political leaders to addr

admin2011-08-28  38
问题     The European Central Bank left its main interest rate unchanged Wednesday, choosing to put the onus on political leaders to address increasingly dangerous tension in the euro zone.
    Noting the stress in Europe and signs of flagging economic growth, the central bank promised to continue providing banks with effectively unlimited low-interest loans at least through the end of the year.
    While most analysts had not expected the central bank to cut rates at its monthly meeting on Wednesday, there was growing speculation that the governing council might cut below 1 percent for the first time in an attempt to restore confidence in the euro zone.
    The bank and its president, Mario Draghi, appear to have decided to wait at least another month in order to discourage complacency by political leaders. Mr. Draghi and other top central bank officials have repeatedly stressed that they lack the tools and the mandate to address the underlying problems in the euro zone.
    Mr. Draghi said the central bank had no "silver bullets" for what he acknowledged was a worrying situation.
    "Some of these problems in the euro area have nothing to do with monetary policy," Mr. Draghi said at a news conference after the monthly meeting of the bank’s governors. "I don’t think it would be right for monetary policy to fill other institutions’ lack of action."
    In a statement, Mr. Draghi noted "increased downside risks to the economic outlook" and said that, judging by futures prices for commodities, annual inflation rates should fall below 2 percent again in early 2013.
    By keeping its firepower in reserve for now, the central bank put pressure on political leaders to weave the euro zone more closely together, for example by sharing the cost of bank bailouts and giving up more control over government spending.
    The central bank may also be concerned that earlier measures intended to calm tensions in the banking system have had unwanted side effects. For example, Spanish banks used inexpensive central bank credit to buy Spanish government bonds. That helped lower the government’s borrowing costs but also made Spanish banks vulnerable to the fortunes of their hard-pressed government.
    While few analysts expected the central bank to cut rates, many still expect a cut in coming months. Mr. Draghi said that a few of the 23 members of the bank’s governing council had argued for a rate cut and left open the option of a cut later on. "We will stand ready to act," he said.
    Many analysts said the effect of a cut would be mostly psychological because short-term interest rates are already close to zero.
    In an attempt to reassure financial markets, the central bank pledged to continue providing banks with low-interest credit, but stopped well short of promising another blast of cheap, three-year loans like the ones it offered in December and March.
    At the news conference, Mr. Draghi seemed to be groping to appear neither alarmist nor complacent. He said the current level of tension was not as bad as it was last fall, or at the end of 2008 after the collapse of the investment bank Lehman Brothers.
    He said Europe should not take all the blame for slow economic growth in the United States or other parts of the world. But he also described the interbank lending market, which is crucial to the functioning of the financial system, as "dysfunctional," and acknowledged anxiety among investors.
    On Wednesday, the European Commission announced a plan for more coordinated oversight of large banks, in part to prevent problems at one institution from spreading. The plan would shift the cost of bailouts to the banking industry and bondholders, though the measures will not be in place in time to help Spain deal with Bankia.
    Political leaders seem to be responding to Mr. Draghi’s call last month for a "bold leap" toward a more cohesive euro zone. But by keeping rates unchanged, the central bank appeared to be signaling that it would like to see concrete steps, not proclamations or statements of good intent.
    "From the E.C.B. perspective, there is likely to be frustration at euro area governments’ seeming inability to deploy the collective mechanisms they developed," analysts at Barclays said in a note to clients Wednesday. "The E.C.B.’s inaction so far seems to reflect an attempt to put greater pressure on governments to address fiscal and banking issues."
                                            From The New York Times, June 7, 2012
What would be the effect of a cut according to many analysts?
选项 A、It would be effective in addressing the current problem.
B、It would exert just little influence on the current situation.
C、It would be very helpful.
D、It has no influence at all.
答案B
解析 本题为推理题。由文章第十一段Many analysts said the effect of a cut would be mostly psychological because short—term interest rates are already close to zero．可以得出：许多专家觉得作用微小，仅是心理上的安慰，故答案B符合。
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