Photo: AP/Michael Probst
UPDATE: The ECB decided to keep rates steady at 1.00 per cent this morning, disappointing analysts who had hoped for more action.From the ECB:
At today’s meeting 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 1.00%, 1.75% and 0.25% respectively.
The possibility remains that the Bank will embark on additional, non-standard easing measures, as those are occasionally announced at a press conference following the decision.
We’ll hear more on today’s decisions at ECB President Mario Draghi’s press conference at 8:30 AM ET. We’ll be following that live at Money Game >
ORIGINAL: We’ll get the latest monetary policy decision from the European Central Bank at 7:45 AM ET, perhaps the biggest decision for the bank since it announced a rate cut and two three-year LTROs in December.
While most analysts polled by Bloomberg believe the bank will hold rates steady at 1.00 per cent, numerous economic indicators (euro area inflation, M3, and PMIs, to name a few) that could induce the Bank to loosen monetary policy.
Further, chatter and preliminary data suggest that funding pressures are building on certain banks, slowing the economy and threatening the stability of the European financial system. This has led some investors to speculate about the possibility of greater central bank intervention.
Then again, the ECB has been conservative on monetary policy even by central bank standards. They also have incentives to keep market pressure on EU leaders to induce swifter measures by policymakers.
Whatever the bank’s decision, we’ll have that decision right here at 7:45 AM ET.
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