Friday, 24 May 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
ECB Keeps Policy, Rate Guidance Unchanged
Wednesday, 10 April 2019 19:01 WIB | FISCAL & MONETARY | ECB

The European Central Bank kept its policy unchanged as expected on Wednesday, maintaining interest rates at record lows and keeping its guidance for steady interest rates this year despite a sharp slowdown in economic growth.

With the economy and inflation both slowing, the ECB has already backtracked on its plans to tighten policy this year, unveiling instead even more stimulus to prop up an export-focused economy now struggling amid a global slowdown in trade.

But having unveiled fresh measures just last month, the ECB can afford to wait before contemplating any further steps, keeping its last remaining policy powder dry in case the growth downturn becomes more severe than now feared.

"The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary," the ECB said in a statement, reaffirming its interest rate guidance.

While this policy is out of sync with market expectations, which put the first hike in 2021, policymakers have dismissed the significance of the disconnect, arguing that economic conditions would impact the eventual move and market prices simply reflect the changing outlook.

Attention now turns to ECB President Mario Draghi's 1230 GMT news conference, at which he is likely to say that risks to growth remain on the downside and the bank remains ready to act with all available instruments.

Investors will also look to see if Draghi elaborates on his recent comments that the ECB would study whether negative rates are starting to have unintended side effects.

With Wednesday's decision, the ECB's rate on bank overnight deposits, which is currently its primary interest rate tool, remains at -0.40 percent.

The main refinancing rate, which determines the cost of credit in the economy, remained unchanged at 0.00 percent while the rate on the marginal lending facility -- the emergency overnight borrowing rate for banks -- remains at 0.25 percent.

Source : Reuters

RELATED NEWS
Fed minutes: Voters say patient stance can last 'for some time'...
Thursday, 23 May 2019 01:16 WIB

Anggota pemungutan suara dari Komite Pasar Terbuka Federal (FOMC) tampak nyaman dengan sikap sabar mereka pada suku bunga, setuju bisa bertahan untuk "beberapa waktu," menurut risalah pertemuan tangga...

RBA Slashes Near-Term Growth Outlook as Employment Key to Rates...
Friday, 10 May 2019 08:57 WIB

Bank sentral Australia memangkas prospek pertumbuhan jangka pendeknya dan mengandalkan kekuatan pasar pekerjaan yang kuat untuk meredam penurunan yang didorong oleh sektor properti dalam pengeluaran r...

Reserve Bank of Australia Keeps Rates on Hold, Aussie Spikes to 0.7045...
Tuesday, 7 May 2019 11:54 WIB

Reserve Bank of Australia (RBA) mempertahankan rekor tingkat kas (OCR) rendah dan mempertahankannya pada rekor serendah 1,50 persen untuk 13 pertemuan berturut-turut, sangat mengecewakan para elang. ...

Bank of England leaves policy rate unchanged at 0.75% with unanimous vote as expected...
Thursday, 2 May 2019 18:26 WIB

Dalam keputusan yang diharapkan secara luas, Komite Kebijakan Moneter Bank of England mempertahankan tingkat kebijakan tidak berubah pada 0,75% dengan suara bulat. Fasilitas pembelian aset tetap stabi...

Fed Holds Interest Rates Steady as Economy Grows at 'Solid Rate' and Inflation Stays Low...
Thursday, 2 May 2019 06:44 WIB

Federal Reserve pada hari Rabu tidak mengubah suku bunga utama AS yang memengaruhi biaya pinjaman untuk hipotek dan segala jenis pinjaman konsumen dan bisnis, mencatat penurunan inflasi baru-baru ini ...

LATEST NEWS
Tokyo stocks open lower on trade worries

Tokyo stocks opened lower on Friday on worries over the US-China trade war as bellicose rhetoric persisted between Washington and Beijing, pushing the safe-haven yen higher against the dollar. The benchmark Nikkei 225 index lost 0.94 percent, or...

Hong Kong Stocks Finish With Steep Losses (Review)

Shares tumbled in Hong Kong and Shanghai on Thursday as traders fret about growing tensions between China and the US, with tech and energy firms among the worst performers. The Hang Seng Index dived 1.58 percent, or 438.81 points, to...

Wall Street Plunges on Trade, Growth Worries

Stocks took a beating Thursday as investors worried that a U.S.-China trade war could drag on indefinitely and sap global growth. The only good news was that the major indexes bounced off their lows in the last hour of trading. The Dow Jones...

POPULAR NEWS
Gold Ends Modestly Higher, Edges Up Further in Electronic Trade after Fed Minutes
Thursday, 23 May 2019 01:18 WIB

Gold prices posted a modest gain on Wednesday, recouping a portion of the loss from a day earlier as U.S. benchmark stock indexes moved...

Gold Ends at Nearly 3-Week Low as Dollar, Stocks Perk Up
Wednesday, 22 May 2019 01:36 WIB

Gold futures ended lower Tuesday as global stocks staged a rebound and the dollar strengthened a bit, dulling bullion's appeal and sending prices to...

Gold Rebounds as Persistent Trade Rift Sinks Equities
Wednesday, 22 May 2019 21:19 WIB

Gold futures rebounded from a two-week low, underpinned by weaker equities and a wavering dollar. Copper prices declined. Gold futures for...

Gold hovers near two-week low on strong dollar ahead of Fed minutes
Wednesday, 22 May 2019 11:38 WIB

Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion...