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Breaking: ECB slashes rates

ECB_slashes_rates_Forex_FXPIG

The European Central Bank has lowered its deposit rate by 10 basis points from -0.40% to -0.50%

However, the ECB announced that it will restart its QE program from November 1, buying 20 billion euros per month with no time limit. The ECB will stop purchases before raising rates.

Guidance has changed:

-- more to come

Follow all the updates in the ECB live coverage

The European Central Bank was expected to cut the interest rate by 10 basis points from -0.40% to -0.60% and also extend its commitment to maintaining low-interest rates for longer. However, some had expected a more aggressive rate cut and an announcement of a new bond-buying scheme – QE. Officials at the bank have recently expressed contradicting views about the scope for new stimulus.

The economic situation in the euro-zone has been deteriorating in the past few months, with signs of an imminent recession. Moreover, inflation – which is the ECB's mandate – has remained depressed with core prices rising by less than 1% YoY.

EUR/USD has been trading above 1.10 ahead of the all-important decision and the press conference by ECB President Mario Draghi.

Source: fxstreet

The European Central Bank has lowered its deposit rate by 10 basis points from -0.40% to -0.50%

However, the ECB announced that it will restart its QE program from November 1, buying 20 billion euros per month with no time limit. The ECB will stop purchases before raising rates.

Guidance has changed:

-- more to come

Follow all the updates in the ECB live coverage

The European Central Bank was expected to cut the interest rate by 10 basis points from -0.40% to -0.60% and also extend its commitment to maintaining low-interest rates for longer. However, some had expected a more aggressive rate cut and an announcement of a new bond-buying scheme – QE. Officials at the bank have recently expressed contradicting views about the scope for new stimulus.

The economic situation in the euro-zone has been deteriorating in the past few months, with signs of an imminent recession. Moreover, inflation – which is the ECB's mandate – has remained depressed with core prices rising by less than 1% YoY.

EUR/USD has been trading above 1.10 ahead of the all-important decision and the press conference by ECB President Mario Draghi.

Source: fxstreet

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