Photo: AP/Michael Probst
UPDATE: The ECB decided this morning to hold rates steady at 1.00%.
This was no surprise to analysts, who largely expected this decision.
ECB President Mario Draghi’s press conference at 8:30 AM ET will probably be more interesting.
Here’s the release:
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 President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.
ORIGINAL: The European Central Bank will announce its latest interest rate decision at 7:45 AM ET, and investors will be curious to see what’s next from the only European organisation that has taken strong, immediate steps to address the problems of the euro crisis.
Analysts expect the bank to hold rates amid some positive economic data lately and signs that it has averted a banking crisis with the liquidity support measures it took back in December.
We’ll be scrutinizing the announcement and Mario Draghi’s press conference following it (at 8:30 AM ET) in search of comments on the following topics:
- The second three-year long-term refinancing operation is scheduled for February 29, however there are as of yet no plans to continue the program beyond this date. We’ll be looking for hints that more LTROs are ahead.
- Draghi’s assessment of the durability of the LTRO’s effects. That includes the direction of risks to price stability and growth.
- The ECB’s willingness to take the pressure of EU leaders. Will they continue to act without market pressure?
- Discussion of the ECB’s involvement in the Greek bailout.