ECB Leaves QE, Forward Guidance Unchanged

"The Governing Council expects the key European Central Bank interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases", the European Central Bank reiterated.

The Frankfurt-based bank also said it planned to maintain its bond purchases under its quantitative easing policy at EUR30 billion a month until at least September this year.

While the ECB's 2.55 trillion euro ($3.10 trillion) bond purchase programme, has cut borrowing costs and kick-started growth, although with no inflationary effect, policymakers will need to end the indefinite growth of money.

The bank's 25-member governing council said Thursday that it was holding its benchmark refinancing rate at a historic low of zero, with analysts not expecting the bank to deliver a fresh rate hike until around the middle of 2019.

At a press conference, ECB President Mario Draghi admitted some moderation of the Eurozone economy.

If growth shows signs of slowing that could be a reason to extend the bank's 30 billion euros ($36 billion) in bond purchases.

Lower interest rates and QE are created to pump cash through the financial system and into lending to firms and households - powering economic growth and inflation.

Russell Westbrook fined $10000, gets tech for Rudy Gobert incident
They generated 30 free throws in Game 4 and were run out of Vivint Smart Home Arena. He earned his fourth foul of the game with 1:36 remaining in the second quarter.

Cavs Double Down, Wear Matching Suits (Again) To Game 4 Vs. Pacers
However, if anyone had been paying real close attention to the Pacers' defense, perhaps they could have seen this coming. At the 4:15 mark, Young blocked a Love layup, then after Love rebounded, Young took the ball out of Love's hands.

Dems Mull Plan to Block Pompeo From State Dept. Confirmation
Sergio Gor, Paul's deputy chief of staff, said the senator had agreed to meet with Pompeo but nothing else had changed. The Senate Foreign Relations Committee has scheduled to vote on the nomination Monday, where it has an uncertain fate.

"The Governing Council expects the key European Central Bank interest rates to remain at their present levels for an extended period of time, and well past the horizon of net asset purchases", the European Central Bank said in a statement, repeating its long-standing guidance on interest rates.

Draghi also warned in Washington last week that rising protectionism might already be hurting business and consumer sentiment.

One worry is that protectionist rhetoric from the United States could push down the value of the dollar, an economic anomaly as the Federal Reserve is likely to raise interest rates several times this year, a natural support for its currency.

A stronger euro would cap inflation, a headache for the ECB as price growth is already set to miss its near 2%target, the central bank's sole policy objective, for years more to come.

Nonetheless, the euro's recent strength has had a relatively limited impact in recent weeks.

Economists have predicted first quarter growth of 0.5 percent, compared to 0.7 percent in the last quarter of 2017.


Popular

CONNECT