Thursday, September 4, 2014

ECB CUTS INTEREST RATES

This was totally unexpected – only two analysts out of 57 on Bloomberg expected a cut. Very EUR-negative

Main lending rate (refinancing or Refi rate) cut to 0.05% from 0.15%.  Almost at zero.
Deposit rate goes more negative at -0.2% from -0.10%
Marginal (lending) rate, the rate at which the ECB will lend to banks that need money suddenly , cut to 0.30% from 0.40%

They said they’re considering an ABS program of EUR 500bn, confirming that they’re considering it.


SHOWS ECB IS REALLY WORRIED. EUR/USD  HEADED LOWER

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