FRANKFURT, March 7 -- The European Central Bank is to offer more cheap loans to banks from September in a bid to boost lending in a slowing economy. The euro area's central bank kept its core interest rates unchanged following the March meeting of its Governing Council - held against a backdrop of continuing pressure from global economic headwinds and Brexit uncertainty. Following the conclusion of its quantitative easing programme last year, the bank was widely expected to announce more help to support businesses and consumers. This is the third time since the eurozone crisis that the bank has launched so-called 'Targeted longer-term refinancing operations' (Tltro) - essentially cheap loans. It is the provision of long-term loans to banks, with the incentive that those who lend more to the real economy will be able to borrow more and at a lower interest rate than the ECB usually offers. The Bank also confirmed it was pushing back guidance on the earliest possible date for any interest rate increase until the end of this year having previously eyed the autumn. Its core interest rate remains at zero at at minus 0.4% for banks to park their money with the ECB - encouraging them to lend the money rather that store it. The Bank's president, Mario Draghi, was expected to give more details at a news conference shortly. Economists widely believe he will downgrade economic growth forecasts. The ECB's action follows a more cautious approach by its US counterpart, the Federal Reserve, which has paused its series of interest rate hikes amid the fallout from the country's trade war with China. The effects have damped demand elsewhere in the global economy - damaging Germany's export-led economy especially while Italy has fallen into recession. Financial markets were quick to react to the ECB's measures - with eurozone banking stocks leaping as the euro weakened.
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