Economy
European Central Bank Leaves Rates Unchanged -- Perhaps No Choices Remain
Published:
Last Updated:
The European Central Bank (ECB) may not have liked to see that Italy has swung back down into recession territory, and it sure as hell doesn’t like to see Europe weakness tied to Russia-Ukraine tensions. Still, the central bank just wasn’t able to pull another rabbit out of its hat.
We would remind readers that the ECB has already started its experiment with negative interest rates.
At Thursday’s meeting in Europe, the Governing Council of the European Central Bank voted to maintain the interest rates. They will remain unchanged on the main refinancing operations, on the marginal lending facility and on the deposit facility. These were set as 0.15%, 0.40% and -0.10% respectively.
Mario Draghi, president of the European Central Bank, has said that the information seen is consistent with a moderate to uneven recovery. He also believes that inflation remains anchored, and the measures taken in June are leading to a climate of easing. Draghi further went on to say the same thing that the U.S. Federal Reserve forecast over and over: Key rates will stay at present levels for an extended period.
Thursday’s news is hardly earth-shattering, and its impact on the stock and bond market is likely to be muted, unless Mario Draghi issues a surprise after his press conference. More eyes were likely on the U.S. weekly jobless claims on Thursday.
ALSO READ: 11 Countries Near Bankruptcy
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.