Where am I?
Home > Chronicles > Economy > World
Sunday, November 22 2009 00:31h
DECISION
ECB Keeps Rates At Record Low 1 Pct, As Expected
The ECB kept its overnight deposit rate, which is acting as a floor for money markets, at 0.25 percent.
ECB Keeps Rates At Record Low 1 Pct, As Expected
The Newest Articles
Jean-Claude Trichet

Author
Author
Reuters
File photo
TEXT
Published: July 02, 2009 13:52h
The European Central Bank left its main refinancing interest rate unchanged at a record low of 1.0 percent on Thursday, as expected by analysts.

Markets are now turning their attention to President Jean-Claude Trichet's news conference at 1230 GMT, when he will explain the decision and may fill in some of the missing details of the bank's plan to buy 60 billion euros' ($84 billion) worth of covered bonds.

The ECB also kept its overnight deposit rate, which is acting as a floor for money markets, at 0.25 percent, and left its marginal lending rate at 1.75 percent.

All but one of the 82 economists polled by Reuters had expected the ECB to leave rates on hold. One said it would cut them by 0.25 percentage points.

The ECB has lowered its interest rates from 4.25 percent since October after the financial crisis intensified and inflation risks weakened.

Euro zone consumer prices fell for the first time in June and the economy is shrinking fast, although some data has shown signs of improvement.

Markets are also keen to see whether Trichet gives any signals that the ECB plans to keep rates low for a lengthy period, or alternatively, whether they could be reduced further.

Related Articles
ADS
ROLLS-ROYCE

Rolls-Royce says car market picking up in Asia

The Britain-based carmaker had a bumper year in 2008 when it sold a record 2,012 cars...
WALL STREET

Wall Street down on technology jitters

The Dow Jones Industrial Average dipped 10.95 points (0.11 percent) in opening trades...
GOLD PRICE

Gold rockets to record high above 1,150 dollars

Traders said the dollar's overall weak tone was due to the prospect of US interest rates...
TAKEOVER

Volkswagen board approves Porsche takeover

The company said it wanted to "modernise and expand its product line" and to enter "new...
GOLD PRICES

Gold demand climbs quarter-on-quarter

In dollar terms, the value of global gold consumption advanced almost 13 percent to 24.7...
CHOCOLATE MAKERS

Hershey and Ferrero will buy Cadbury?

The news could remould the chocolate-making sector with a takeover costing more than 10.0...
APEC

Obama joins APEC leaders for dress-up dinner

The leaders were to be treated to a spread of Singapore cuisine -- made less spicy and...

ADS
------------------
Copyright © 2006-2009 Javno.com   All rights reserved.