NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

ECB keeps rates at record low 1 pct, as expected

Published 07/02/2009, 07:46 AM
Updated 07/02/2009, 07:48 AM

FRANKFURT, July 2 (Reuters) - The European Central Bank left its main refinancing interest rate unchanged at a record low of 1.0 percent on Thursday, as expected by analysts.

Markets are now turning their attention to President Jean-Claude Trichet's news conference at 1230 GMT, when he will explain the decision and may fill in some of the missing details of the bank's plan to buy 60 billion euros' ($84 billion) worth of covered bonds.

The ECB also kept its overnight deposit rate, which is acting as a floor for money markets, at 0.25 percent, and left its marginal lending rate at 1.75 percent.

All but one of the 82 economists polled by Reuters had expected the ECB to leave rates on hold. One said it would cut them by 0.25 percentage points.

The ECB has lowered its interest rates from 4.25 percent since October after the financial crisis intensified and inflation risks weakened.

Euro zone consumer prices fell for the first time in June and the economy is shrinking fast, although some data has shown signs of improvement.

Markets are also keen to see whether Trichet gives any signals that the ECB plans to keep rates low for a lengthy period, or alternatively, whether they could be reduced further. (Reporting by Sakari Suoninen; editing by David Stamp)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.