European Central Bank

ECB Governing Council Signals Greater Attention to the Euro

April 22, 2021

As expected, the European Central Bank left its interest rate structure, quantitative policy settings, and forward guidance unchanged at today’s review. The deposit rate will stay at negative 0.5%, and there remains a 1.85 trillion euro envelope on the Pandemic Emergency Purchase Program. The characterization of inflation dismisses the recent acceleration as a development stemming […] More

Spotlight on Europe: ECB Meeting and Several Indicator Releases

April 22, 2021

The weighted DXY dollar index dipped 0.1% overnight despite gains of 0.3% against the Swiss franc, 0.2% versus sterling and 0.1% relative to sterling. A new wave of Turkish lira sales also lifted the dollar 0.5% against the currency. There were modest dollar losses of 0.2% against the Mexican peso and New Zealand dollar and […] More

ECB Maintains Interest Rate Levels and Forward Guidance and Announces Near-Term increase in Pace of PEPP Bond Buying

March 11, 2021

This week’s monetary policy review by the Governing Council of the European Central Bank left the interest rate structure unchanged, with a zero percent refinancing rate flanked by a negative 0.5% overnight deposit rate and a +0.25% rate on the marginal lending facility. Euroland has been less successful than many other places rolling out Covid-19 […] More

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