Tuesday, 21 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
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 ...

BOJ keeps policy unchanged, modifies guidance on interest rates...
Thursday, 25 April 2019 10:55 WIB

Pada hari Kamis, Bank of Japan (BOJ) menyimpulkan pertemuan peninjauan kebijakan moneter 2 hari di bulan April dan tidak membuat perubahan pada pengaturan kebijakan moneternya, mempertahankan suku bun...

LATEST NEWS
Gold posts a modest rise after ending last week at a 2-week low

Gold prices finished Monday with a modest gain after settling at a two-week low in the previous session, with the dollar showing some weakness and U.S. stocks on the decline. June gold on Comex added $1.60, or 0.1%, to settle at $1,277.30 an...

Saudi, UAE See Sufficient Oil Supplies, Rising Stocks

Oil supplies were sufficient and stockpiles were still rising despite massive output drops from Iran and Venezuela, said OPEC kingpin Saudi Arabia and key producer UAE on Sunday, as oil exporters met in Jeddah. Producer nations discussed how to...

Wall St. Lower as Tech Stocks Sell-Off on Huawei Fallout Worries

U.S. stocks fell on Monday, as Washington's crackdown on China's Huawei Technologies stoked fears about a hit to the broader technology sector and ratcheted up trade tensions between the world™s two largest economies. Apple Inc slumped 3.3%,...

POPULAR NEWS
Hong Kong, Shanghai Shares End Tough Week on a Low (review)
Saturday, 18 May 2019 03:11 WIB

Hong Kong stocks dived on Friday, topping off another torrid week, as investors fret about rising trade tensions between China and the United...

Gold Claws Up From Two-Week Lows as Dollar, Stocks Point Lower
Monday, 20 May 2019 18:49 WIB

Gold futures prices inched up from the two-week lows hit to wrap up last week, with both the dollar and stocks pointing lower Monday. A narrow...

Oil falls for the session, but gains for the week ahead of OPEC committee meeting
Saturday, 18 May 2019 03:04 WIB

Oil futures finished lower Friday, with U.S. prices down for the first time in four sessions, but up for the week, as any potential demand worries...

Stocks end lower as trade tensions continue, post weekly loss
Saturday, 18 May 2019 03:09 WIB

Stocks ended lower Friday, with major benchmarks logging weekly losses, as worries remained over U.S.-China trade tensions. The S&P 500 fell...