ECB may up credit for shaky banks | india | Hindustan Times
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ECB may up credit for shaky banks

Some analysts expect the European Central Bank this week to boost its emergency credit offerings to banks that are under pressure from the eurozone debt crisis.

india Updated: Oct 04, 2011 21:47 IST

Some analysts expect the European Central Bank this week to boost its emergency credit offerings to banks that are under pressure from the eurozone debt crisis.

But they say Thursday's ECB meeting is unlikely to result in a cut in the bank's benchmark refinancing rate from the current 1.5%.

Signs that Europe's economy is headed for a slowdown or recession are putting pressure on the bank to cut rates. But a sharp rise in September's inflation rate to 3.0% means the bank's 23-member rate-setting council is likely to wait.

Instead, it may launch an offer of one-year unlimited borrowing to banks.