The ECB rates unchanged.
Today,
Thursday, Dec. 5, 2013, a few minutes after Bank of England has announced to keep
its current interest rates unchanged at its current level of 0.25 % .
The
slight decrease in unemployment, inflation recovery and strong economic
indicators in the euro zone, especially in Germany, have encouraged the
European Central Bank to keep its monetary policy unchanged.
No
changes will be made on the deposit rate at which banks
can have extra liquidity, which is maintained at 0 % since July 2012. Yet many
analysts were betting on the eventual possibility that the ECB would make it
negative to encourage loans instead of deposits.
Mr.
Draghi cut short to any speculations regarding the "new measures" to
improve the levels of inflation by announcing that no action is being
considered. Mr. Draghi announced yet that he was ready to act in case of inflation
rate slippage.
Apart
from inflation rate (1.1 %) far from the objectives set by the ECB (2%), some
economists fear lower business bank credit rates, in October, the decline was
2.1% to the private sector. Corporate loans mean investment and therefore
economic growth. This is why some expect a new new long-term loan (LTRO) to encourage
the European economy.
Mr.
Draghi speech was beneficial to the euro which bounces upward after. The report
of employment and unemployment in the United State
on Friday, Dec. 6 will be decisive for those who trade the EUR/USD pair.
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