Wednesday, 17 July 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 Chief Powell Says He Thinks Core Inflation Picked Up a Bit in June...
Wednesday, 17 July 2019 00:16 WIB

Federal Reserve Chairman Jerome Powell said Tuesday that the central bank now estimates that a key measure of core inflation increased in June to its highest level in four months but added that, despi...

RBA Monitoring Job Market Closely, to Adjust Rates If Needed...
Tuesday, 16 July 2019 08:53 WIB

Australia's central bank is focused on the jobs market and said it will adjust policy if needed to support economic growth and keep inflation on track to return to target. In minutes of its July 2 me...

Powell says U.S. economy was hit by 'confidence shock' - it has only partly recovered...
Thursday, 11 July 2019 23:00 WIB

Federal Reserve Chairman Jerome Powell said Thursday that the U.S. economy was hit by a severe œconfidence shock in May from which it has only partly recovered. œYou saw business confidence su...

'Many' Fed Officials Said in June They'd Be Willing to Cut Interest Rates if Uncertainty Still Weighs on Outlook, Minutes Show...
Thursday, 11 July 2019 01:18 WIB

Many Federal Reserve officials said in their meeting in June that they would be willing to cut interest rates if the economy continued to struggle in coming weeks, according to minutes of the discussi...

Powell speech: Weak inflation could be even more persistent than Fed currently anticipates...
Wednesday, 10 July 2019 21:00 WIB

In his prepared statement to be delivered at his semi-annual testimony to the Congress, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, reiterated that the Fed will act '...

LATEST NEWS
Tokyo Stocks Close Lower as Trade Optimism Fades

Tokyo stocks closed lower on Wednesday tracking falls on Wall Street, as optimism over US-China trade talks receded after recent comments from both sides. The benchmark Nikkei 225 index lost 0.31 percent, or 66.07 points, to close at 21,469.18,...

Gold Prices Turn Lower on U.S.-Iran Talks, Strong Retail Sales Data

Gold prices fell on Wednesday in Asia on reports that the U.S. is set to begin talks with Iran. Retail sales gained 0.4% in June, outpacing consensus forecasts for a 0.1% advance. The data sparked buying interest in the U.S. dollar and pushed...

Oil Prices Near Flat After Falling More Than 3% Overnight

Oil prices were near flat on Wednesday in Asia after slumping more than 3% overnight following news that U.S. President Donald Trump and his administration are ready to start talks with Iran. U.S. Crude Oil WTI Futures last traded at $57.64 by...

POPULAR NEWS
Gold prices settle at nearly two-week peak
Tuesday, 16 July 2019 01:55 WIB

Gold futures edged higher on Monday, settling at their highest in almost two weeks as prices extended recent gains scored on the back of...

Gold prices end lower; silver rallies to highest finish since February
Wednesday, 17 July 2019 02:11 WIB

Gold ended lower on Tuesday as a rise in U.S. retail sales contributed to a stronger U.S. dollar, pressuring prices for the precious metal. The...

Wall St. Leans Neutral/Sideways On Gold Prices, Main St. Bullish
Monday, 15 July 2019 13:42 WIB

Wall Street traders and analysts are undecided or else look for gold prices to be sideways this week, while Main Street remained bullish, according...

Gold Trades Steady Ahead of China GDP Data
Monday, 15 July 2019 09:58 WIB

Gold prices held steady in early Asian trade on Monday, as market participants awaited key economic data from China for cues about the health of the...