April 2 (Bloomberg) -- The European Central Bank would have to signal that interest rates won’t fall any further if it decides today to offer banks longer-term loans, economists said.
Four ECB policy makers including Vice President Lucas Papademos have indicated the bank may lengthen the maturities of its loans to banks from the current six-month limit to ease credit tensions. That’s stoked speculation the move could come as soon as today, when officials meet in Frankfurt to decide on rates.
