Photo: AP/Michael Probst
UPDATE: The ECB left interest rates unchanged at 1.00 per cent in its latest monetary policy decision.While this was expected, it is also (counter-intuitively) euro-bearish, as a cut would have increased investor confidence in the ECB’s willingness to act amid the sovereign debt and banking crises still ravaging the euro area economy.
We’ll hear more from Draghi about this latest decision and we’ll listen for hints about another LTRO, more bond-buying, and the possibility of a future rate cut when Draghi speaks at 8:30 AM ET.
Here’s the full release:
3 May 2012 – Monetary policy decisions
At today’s meeting, which was held in Barcelona, 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: In just a few moments—at 7:45 AM ET—the European Central Bank will release its May monetary policy decision. Then at 8: 30 AM ET we’ll have a press conference from ECB president Mario Draghi in Barcelona.
Analysts aren’t expecting the central bank to make any changes to its current interest rate target of 1.00 per cent, despite the fact that economic conditions in the euro area appear to be deteriorating.
We’ll have the full release of the monetary policy decision right here, and we’ll be following Draghi’s press conference live on the Money Game >