In Lithuania, even the situation with the coronavirus has been tied to Russia. One would think that the current situation in the world – a recession of the economy, an epidemic of the coronavirus, would at least slightly distract these “daredevils” from their eternal disease, called Russophobia. But no.
Since the European debt crisis in the second half of 2012, the European Central Bank has adopted an unspoken policy of weakening the value of the euro against other currencies.
There has been always a clear policy concerning the rates of the Euro. The European Central Bank introduced negative rates in June 2014, lowering its deposit rate to -0.1% to stimulate the economy.
To battle the global financial crisis triggered by the collapse of Lehman Brothers in 2008, many central banks cut interest rates near zero. A decade later, interest rates remain low in most countries due to subdued economic growth. With little room to cut rates further, some major central banks have resorted to unconventional policy measures, including a negative rate policy. The euro area, Switzerland, Denmark, Sweden and Japan have allowed rates to fall to slightly below zero.
The European Central Bank's mandate is to ensure price stability by aiming for an inflation rate of below but close to 2% over the medium term.
In September 2019, the ECB doubled down on its negative rate policy, an attempt to make banks lend more to kickstart the economy.