ECB seen offering generous loans to banks to boost feeble growth

Frankfurt: The European Central Bank (ECB) will offer eurozone banks generous terms on its upcoming long-term loans when it meets next week but won’t do anything to soften the impact of negative rates, economists predict.

Respondents in a Bloomberg survey said the interest rate on the two-year loans would be below the ECB’s benchmark rate – currently zero – if banks hit lending targets to help the currency bloc overcome its economic weakness. A majority see the rate at -0.25% or lower.