The European Central Bank (ECB) this morning announced that it would leave its benchmark interest rate at 0.75%. ECB President Mario Draghi also said in his monthly press conference that the proposed bond-buying program — called Outright Monetary Transactions, or OMT — has helped ease difficulties in the eurozone financial markets.
Draghi also made it clear that the ECB is ready to pull the trigger on the OMT program as soon as a eurozone country seeks assistance. It is unknown whether or not Spain heard that call.
Eurozone inflation, which has been slightly above the ECB’s target of 2% or less, is expected to fall below 2% in 2013, according to Draghi. Economic recovery in the eurozone is expected to be gradual the ECB chief said.
Given that the Bank of England did not change its rates this morning, nor did it add to its asset purchase plan, the ECB’s lack of action is no big surprise. Until Spain applies for OMT funding, we really will not know if or how Draghi’s master plan will work. He seems to think everything’s groovy, but Germany’s Bundesbank is not totally onboard with the ECB’s bond-buying scheme. That is more than a little bit problematic.
Paul Ausick
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
