As global markets tank, central banks come to the rescue. The European Central Bank kept its benchmark interest rates unchanged, including a negative deposit rate, which incentivizes banks to lend money. While ECB President Mario Draghi – the Janet Yellen of Europe – didn’t announce additional stimulus measures, he hinted that some may come as soon as March. That’s because inflation has remained stubbornly low across Europe. Consumer prices rose just 0.2 percent as of December on an annualized basis. The ECB’s inflation target is 2 percent. Low inflation – and even deflation – is dangerous to an economy as consumers may delay spending. Additional stimulus measures encourages more investment into the economy, pushing up consumer prices over time. TheStreet’s Scott Gamm reports from Wall Street.
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