European Central Bank
European Central Bank Maintains Loose Monetary Stance
January 21, 2021
Having augmented the ECB’s Pandemic Emergency program (PEPP) of asset purchases by half a trillion euros and extending this “very accommodative” quantitative stimulus from mid-2021 to March of 2022 at its final policy review of 2020, the European Central Bank governing council left all quantitative and interest rate settings unchanged at its first meeting of […] More
Slew of U.S. Executive Orders and Central Bank Policy Reviews
January 21, 2021
President Biden’s inaugural address yesterday called for national unity to face down the many severe challenges now juxtaposed. 17 executive orders followed to reverse several polices of the Trump era. Contrary to warnings, inauguration day was free of domestic violence. U.S. stocks experienced their greatest advance on a presidential inauguration day since 1985, when Reagan […] More
European Central Bank
October 29, 2020
The ECB Governing Council did not change policy settings, nor was a change expected by street analysts. The deposit rate has been -0.5% since September 2019, and the size of the PEPP program of pandemic support was lifted to 1.35 trillion euros last June and will remain at least through next June. Regular asset purchases […] More
European Central Bank Leaves Policy Settings As Is
July 16, 2020
The European Central Bank’s Governing Council agreed to continue with currently expansive monetary policy settings. According to a released statement, the refinancing rate is zero percent since its last cut of 5 bps in late 2015 and is flanked by a negative 0.50% deposit rate (last cut by 10 bps in September 2019) and a […] More
European Central Bank Expands Stimulus Measures
June 4, 2020
The Governing Council of the European Central Bank left its interest rate structure as is but took further steps towards a more accommodative stance via changes in forward guidance and a big increase of the pandemic emergency purchase program (PEPP), which was raised from EUR 750 billion to EUR 1.35 trillion. The PEPP program will […] More
Strong Equity Rally and Dollar Downtrend Pause
June 4, 2020
Stock markets mostly rose in the Pacific Rim and Europe but only modestly for the most part in contrast to yesterday’s sharp advance. Just prior to the release of U.S. data this morning, U.S. stock futures were suggesting a downtick at the open. The dollar is unchanged from Wednesday closing levels against the euro, yen, […] More
No Fireworks from ECB this Time
April 30, 2020
At a scheduled meeting of the European Central Bank Governing Council, officials left key interest rate unchanged (a 0.0% refinancing rate flanked by a -0.5% deposit rate and a 0.25% marginal lending rate). Quantitative stimulus (asset purchases) was not enhanced beyond last month’s parameters. Terms were relaxed on some lending operations, and a new series […] More
ECB Monetary Policy Review and Some Atrocious Economic Data
April 30, 2020
At a scheduled meeting of the European Central Bank Governing Council, officials left key interest rate unchanged (a 0.0% refinancing rate flanked by a -0.5% deposit rate and a 0.25% marginal lending rate). Quantitative stimulus (asset purchases) was not enhanced beyond last month’s parameters. Terms were relaxed on some lending operations, and a new series […] More
Dollar Down After Fed Expands Currency Swap Network.. Equities Up in Asia and Europe
March 20, 2020
The dollar fell overnight by 2.9% against the Australian dollar, 2.5% relative to the kiwi, 2.2% versus sterling, 2.0% vis-a-vis the loonie, 0.8% against the peso, 0.6% versus the yen and 0.4% relative to the euro and Swiss franc. The swap line arrangement that enables central banks to exchange on a temporary basis their own […] More
Takeaways from ECB Actions and Press Conference
March 12, 2020
The European Central Bank’s second scheduled Governing Council meeting of 2020 produced an interest rate surprise. Despite strongly expected cuts, the marginal lending facility rate of 0.25%, refinancing rate of zero percent, and overnight deposit facility rate of -0.50% were each left unchanged. The last deposit rate cut was made in September 2019, and the […] More
