mercredi 15 avril 2015
ECB Keeps Rates on Hold as Draghi Assurance on QE Path Awaited
Posted on 05:04 by nice news
The European Central Bank kept interest rates unchanged at record lows as it focuses on a bond-buying program to bolster the improving euro-area economy.
The 25-member Governing Council left the main refinancing rate at 0.05 percent at its meeting in Frankfurt on Wednesday, as predicted by all 51 economists in a Bloomberg News survey. The deposit rate and the marginal lending rate stayed at minus 0.2 percent and 0.3 percent, respectively.
Almost six weeks into its 1.1 trillion-euro ($1.2 trillion) quantitative-easing plan, the ECB is claiming some early successes as the economy picks up and lending recovers. When Draghi holds a press conference at 2:30 p.m. in Frankfurt, he may reassure investors there’s no reason to assume the program will stop before the scheduled end-date of September 2016.
“We believe that it is still premature to have a clear idea of the macroeconomic impact, and rumors that the ECB could halt its program soon due to the improving outlook for growth are clearly unjustified,” said Philippe Gudin, chief European economist at Barclays Plc in Paris. “The ECB will probably have to discuss the question of financial stability and will be questioned on the risks related to high asset prices as a result of QE.”
Growth Signs
The ECB embarked last month on its plan to spend 60 billion euros a month on sovereign and private-sector debt. It intends to continue until September next year or until officials “see a sustained adjustment in the path of inflation” toward the medium-term goal of just under 2 percent.
The slide in euro-area consumer prices recorded since December is fading, and economic survey data has signaled the regional recovery is accelerating. The International Monetary Fund increased its economic-growth forecasts for the euro area on Tuesday.
European stocks and bonds have risen. The Stoxx Europe 600 Index closed at a record high on Monday, and Germany’s 10-year bond
The 25-member Governing Council left the main refinancing rate at 0.05 percent at its meeting in Frankfurt on Wednesday, as predicted by all 51 economists in a Bloomberg News survey. The deposit rate and the marginal lending rate stayed at minus 0.2 percent and 0.3 percent, respectively.
Almost six weeks into its 1.1 trillion-euro ($1.2 trillion) quantitative-easing plan, the ECB is claiming some early successes as the economy picks up and lending recovers. When Draghi holds a press conference at 2:30 p.m. in Frankfurt, he may reassure investors there’s no reason to assume the program will stop before the scheduled end-date of September 2016.
“We believe that it is still premature to have a clear idea of the macroeconomic impact, and rumors that the ECB could halt its program soon due to the improving outlook for growth are clearly unjustified,” said Philippe Gudin, chief European economist at Barclays Plc in Paris. “The ECB will probably have to discuss the question of financial stability and will be questioned on the risks related to high asset prices as a result of QE.”
Growth Signs
The ECB embarked last month on its plan to spend 60 billion euros a month on sovereign and private-sector debt. It intends to continue until September next year or until officials “see a sustained adjustment in the path of inflation” toward the medium-term goal of just under 2 percent.
The slide in euro-area consumer prices recorded since December is fading, and economic survey data has signaled the regional recovery is accelerating. The International Monetary Fund increased its economic-growth forecasts for the euro area on Tuesday.
European stocks and bonds have risen. The Stoxx Europe 600 Index closed at a record high on Monday, and Germany’s 10-year bond
ECB Keeps Rates on Hold as Draghi Assurance on QE Path Awaited
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