EMU ECB Interest Rate Decision

Description

The European Central Bank Governing Council meets every month to discuss monetary policy and set the interest rate. The Governing Council announces the interest rate after these meetings. Market participants monitor the policy statement for signs of future policy changes.
Latest Release: 04-12-2014 12:45:00
Next Release: 07-11-2013 12:45:00
Source:European Central Bank
Draghi Coy on ABS Details
Oct 3rd, 2014 at 07:04 AM

The ECB disappointed most market participants last night, causing some increased volatility in Forex markets without creating much strong direction; stock markets reacted negatively with an emphasis on peripheral Europe, with most markets down around 1-3%. Draghi did not disappoint in the size of the ABS program, but rather in skirting around actually revealing any firm figures on the stimulus measures. During the Q & A session Draghi chose to avoid answering direct questions about the amount the ECB would purchase, directing listeners to the press release sent out after the press conference. From the statement:

Programmes will last at least two years

Will enhance transmission of monetary policy, support provision of credit to the euro area economy and, as a result, provide further monetary policy accommodation

Eurosystem collateral framework is guiding principle for eligibility of assets for purchase

Asset purchases to start in fourth quarter 2014, starting with covered bonds in second-half of October

The announcement fell short of announcing specific details, as well as extending the program to 2 years which indicates the rate of purchases may be slower than expected. However, without firm details the announcement left analysts to pick over the details that were announced to try and gauge the scale, such as what would be included under the ‘simple and transparent’ securities:

“The third point is that we want to be as inclusive as possible. But with prudence, so that we have decided to include countries that have a rating below BBB-, like...

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