FRANKFURT, Germany—Multiple threats stalking Europe’s economy mean the European Central Bank could keep interest rates at rock-bottom levels longer than expected, extending skimpy returns for savers — but supporting indebted companies and governments with low borrowing costs.
Speculation about a possible longer path to the first rate increases in Europe since 2011 has grown ahead of the European Central Bank’s meeting scheduled on Jan. 24. The renewed focus also comes after U.S. Federal Reserve chairman Jay Powell suggested the Fed might not hike its own rates as fast as expected either.
