Mario Draghi’s habit of springing surprises means that few can say what he’ll do when European Central Bank officials decide on monetary policy today. Inflation at a four-year low and volatile market rates speak for further action by the Governing Council, even after it cut official rates to record lows in November.…
Tags: draghi, rates, ecb, will, president, hold, mario
None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days. The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB…
Press conference following the meeting of the Governing Council of the European Central Bank on 6 March 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario…
Press conference following the meeting of the Governing Council of the European Central Bank on 6 February 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario Draghi, President…
Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited" bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days.
The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB decision will surely bring some volatility.
Draghi & Co can opt to do nothing or take action in three different ways:
A 10-15 basis point cut in the main refi rate
Switching to unsterilized bond purchases (QE)
Negative deposit rates
The legality of option #2 is questionable. Any of those move would spark euro selling, partially because it implies more future action.
Ten days ago, the market was comfortable with a wait-and-see decision but soft inflation readings have put pressure on the ECB to act.
There was a lot of uncertainty and debate last summer and fall over whether President Obama would appoint Janet Yellen or Larry Summers as Federal Reserve chair. What wasn’t really up in the air was whether the new head of the world’s most powerful central bank would have a doctorate in economics.…
Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited" bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
It was almost exactly five years ago that the euro crisis erupted, starting in Greece. Investors who had complacently let all euro-zone countries borrow at uniformly low levels abruptly woke up to the riskiness of an incompetent government borrowing money in a currency which it could not depreciate. There…
The European Central Bank is poised to impose negative interest rates on its overnight depositors, seeking to cajole banks into lending instead and to prevent the euro zone falling into Japan-like deflation. At its meeting on Thursday, ECB policymakers may also launch a loan program for banks with strings attached…
Tags: ecb, euro, rate, deposit, rates, cut, negative, inflation, will
European Central Bank President Mario Draghi hoped never to see this moment: Consumer prices in the euro region have dropped by 0.2 percent, according to December figures just published: Deflation -- a sustained period of falling prices that discourages consumers from spending and businesses from investing -- threatens to worsen the…
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