European Central Bank keeps interest rates unchanged

11 Marcha, 2018, 00:30 | Author: Arnold Perez
  • Keep Vigilance on the Dollar as Trump Signs Tariffs and Euro with ECB

ECB President Mario Draghi is to hold a news conference after a meeting Thursday of the bank's 25-member governing council. The interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility remain unchanged - 0.00%, 0.25% and -0.40% respectively. Economists largely predicted no change in guidance this month, expecting instead to have to wait until June to receive a clearer indication. It continued to state that net asset purchases, at €30bn a month, would run until the end of September 2018, or until the council sees "a sustained adjustment in the path of inflation consistent with its inflation aim". The bank dropped the line that it would stand "ready to increase the asset purchase programme (APP) in terms of size and/or duration", if the economic outlook became "less favorable". Euro/dollar traded lower at 1.2370 (-0.34%) ahead of the European Central Bank rate announcement where any clues on the ECB's plans to change its forward guidance on monetary policy could bring fresh volatility to the currency.

A stimulus exit would likely send interest rates and the euro higher.

At the same time the US Dollar is a holding pattern this morning as markets remain cautious following Trump's signing of an order introducing trade tariffs on metal imports.

"They toned down the easing bias but there is still a willingness to ease and the tone of Draghi's comments was still dovish, stressing that there is still not a convincing uptrend in inflation", said Chris Scicluna, head of economic research at Daiwa Capital Markets.

Europe's top monetary official criticized U.S. President Donald Trump's proposal to put tariffs on steel and aluminum imports as a "dangerous" unilateral move.

EUR/USD Forecast: US Employment Data to Bolster the US Dollar?

Analysts said reports that Italy's centre-right alliance was reaching out to lawmakers from the Democratic Party to seek support for a broad governing alliance after Sunday's inconclusive election was also supporting Italian debt.

More news: Actress Elizabeth Hurley's model nephew fights for life after brutal stabbing attack
More news: TN: 'Husband' stabs girl to death outside college, accused arrested
More news: Texas Waffle House worker rewarded for act of kindness toward elderly customer

During the subsequent European Central Bank press conference, Draghi was able to tone down any hawkishness in the statement in his responses to questions from the assembled group of journalists. But he said such disputes should be worked out among trade partners, not decided by measures initiated from one side.

Markets still awaited developments in the ongoing drama over tariffs and trade wars.

"If anything the European Central Bank could be facing a bit of a problem in terms of its attempts to draw back from its easy monetary policy, particularly since the data isn't moving its way".

As the economic recovery continues to gain momentum in the euro area, there has been increasing speculation about the winding down of ECB's monetary easing policies.

March U.S. Dollar Index futures settled at 90.156, up 0.549 or +0.61%. The FTSE 100 index closed up 0.2% at 7,157.84 on Wednesday.

"The ECB gave a reassuring message that QE would not come to a swift end in September and stated that the discussion on rate hikes and their timing had just started", said Commerzbank rates strategist Rainer Guntermann.

The Stoxx Europe 600 index climbed 1.1% to 376.62, the best close since February 28, FactSet data showed.

Recomendado:



Popular

Osaka stuns Sharapova in 1st round
The 16-year-old Anisimova, who earned a wild card into the main draw, is the U.S. Maria Sharapova continued to struggle to find form this season.

West Ham v Burnley: Hammers can grab vital win in tight match
West Ham fans entered the pitch during the Premier League clash with Burnley amid chaotic and toxic scenes at the London Stadium. As the wheels began to come off the anger towards the board grew, and anarchy began to break out on the pitch and in the stands.

Falso que haya tenido tratos con Ponce: Fox a AMLO
En el marco del Día Internacional de la Mujer, el candidato Andrés Manuel López Obrador afirmó que su esposa Beatriz Gutiérrez Müller sí lo critica e influye en sus decisiones.

A Nun In the Katy Perry Property Lawsuit Died In Court
A few hours before her death Sister Catherine spoke to Fox 7 News in which she urged Katy to fall back on the legal battle. A jury ruled in Katy and the Archdiocese's favor previous year and Hollister was ordered to pay $15 million in damages.

Revelan video del momento en el que Ramos corre al baño
Luego el defensor regresó al campo de juego y, minutos más tarde, Cristiano Ronaldo puso el 2-1 definitivo a favor del Real Madrid .

Crash Bandicoot N. Sane Trilogy quita todas las referencias a Naughty Dog
Conocé más detalles y novedades, ¡acá! Por ejemplo, en la cinemática de introducción de Crash Bandicoot N. Sane Trilogy pierde su exclusividad en PlayStation 4 y regresa a una plataforma de Nintendo .

Aficionados invaden la cancha en derrota del West Ham
En este juego, el delantero mexicano Javier Hernández entró de cambio hasta el minuto 71 y poco pudo hacer para evitar la derrota. Tras el segundo gol en contra, el ambiente se siguió tensando y comenzaron los cánticos en contra de la directiva en la tribuna.

Pakistan Court Retrains Government From Arresting Hafiz Saeed
This is unedited, unformatted feed from the Press Trust of India wire. He was under house arrest since January previous year .

Former Asheville Police Officer Charged For August Beating
Describing the threat charge, it also notes that Hickman can be heard saying to Rush: "You're going to get f--d up hardcore". Hickman was charged with assault by strangulation, assault inflicting serious injury and communicating threats.

Mario Kart is coming to Google Maps for one week only
Google is encouraging users to take a screenshot of Mario inside Maps and share it on social media with the hashtag #MarioMaps . The Japanese game company is now working on " Mario Kart Tour ", the first time the series will appear on smartphones.