In a widely expected move that will nevertheless be parsed to death, the ECB has omitted guidance that rates may be cut further.
ECB OMITS GUIDANCE THAT INTEREST RATES MIGHT BE CUT AGAIN
They're now going with this more "hawkish" assessment: "We expect interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases."
There were of course no actual changes to policy:
European Central Bank confirms asset purchase program at EU60b a month through at least December.
Reiterates that rates to stay at present or lower levels past QE horizon, sees QE running until end of December or beyond if needed
Keeps main refinancing rate unchanged at 0.00%
Leaves deposit facility rate unchanged at -0.40%
Keeps marginal lending rate unchanged at 0.25%
The knee-jerk reaction in the euro was lower.
At today’s meeting, which was held in Tallinn, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council expe
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