Keep it on the Senate to consider a financier Omen to freedom.

Very stunned when Nevin in Oban, Krishna militate for Alan and that the business is this the amount I'm disaster revision opened on the laptop.

Thanks the Seabees.

Key interest rate is lower than ever.

A lot of people are annoyed by this doubt, whether it's really necessary.

We spoke to people on the streets to find out the questions being asked.

Our experts of the E.

C B in Frankfurt talked these questions over and came up with some clear answers.

Interesting, but only it's a bit since and our have to need it.

To answer this, we need to understand the Seabees objectives.

These are mainly to keep prices stable in the euro area as a whole.

Prices should not increase too slowly.

Aw, too quickly, preferably a just below 2% per year.

But for a long time, prices in the euro area have only been rising very slowly.

This is because the economy in Europe is growing at a week rate, so to meet its objective, the E C B needs to stimulate the economy.

To do this, it uses various instruments, such as the key interest rate.

The CB sets the key interest rate I'II, the price at which banks come borrow money from the E C B.

If the key interest rate is low, banks can borrow money cheaply as they hardly have to pay any interest.

Because of this, banks can also lend money to their customers at lower rates.

This means that customers can take out cheap loans, for example, to buy a new car or a house car.

Manufacturers and construction firms then also make more money.

Their income rises and they can pay higher wages.

They can also hire more people.

These people then also have more money and can buy more.

This against the economy.

Going a low key interest rate also has an effect on people's savings.

It means that savers will not earn much interest on the money they put in the bank.

This man knew, he savors, and many may think it's not worth saving.

But people who would rather spend their money also boost the economy.

So by keeping the key interest rate low, the CB is trying to stimulate the economy and keep prices stable in the euro area.

Yeah, Mickey Rudin Christian were long and the sense politically active.

Ella lost off.

What food Word on the front window.

Let's go back to the end of our last explanation.

Once the economy is stimulated and the demand for its products has grown, companies will want to increase their prices to ensure that prices don't increase too quickly.

For E.

C B will once again step in fulfilling its mandate to keep prices stable throughout the euro area assumes the economy is doing well and prices are rising.

The CB will increase the key interest rate again, so low interest rates today help us lay the foundations for higher interest rates tomorrow.