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Draghi delivers on promise, ECB cuts deposit rate by 10bp

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Investors had been hoping for Mario Draghi to deliver on promises after risk suffered following Fed’s Yellen’s comments that she was "looking forward" to hiking U.S. rates. Draghi did not quite disappoint. At today’s meeting the governing council decided to slash deposit rate by 10 basis points. The deposit rate now at -0.30 per cent moves further into the negative territory. The decision will come into effect from 9th December 2015. Today’s rate cut highlight the central bank’s intention to further weaken the euro exchange rate and thereby support economic growth through exports.

    Both the refi as well as the marginal lending facility rate were kept unchanged. The markets had however expected a little more. The hawks probably managed to at the ECB had more leverage than expected. The interest rate on the main refinancing operations and the interest rate on the marginal lending facility will remain unchanged at 0.05% and 0.30% respectively.

    Further monetary policy measures will be communicated by the ECB chief, Mario Draghi at a press conference starting at 14:30 CET today.

    The interest rate on the main refinancing operations and the interest rate on the marginal lending facility will remain unchanged at 0.05% and 0.30% respectively.

    Further monetary policy measures will be communicated by the ECB chief, Mario Draghi at a press conference starting at 14:30 CET today.
    For more information, read our latest forex news.
     

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