Posted by: youngragingbull | April 4, 2013

Word on the Street: Bank of England & ECB leave policies unchanged

Both the Bank of England and the European Central Bank on Thursday left their key lending rate unchanged while continuing previous quantitative easing programs.

The Bank of England held its key lending rate at a record low of 0.5%, as expected by economists and analysts. The Bank also decided to leave its bond-buying and asset purchases the same at 375 million pounds ($564 billion).

Meanwhile, the ECB voted to keep its key lending rate unchanged at 0.75%, which was also expected by economists and analysts.

ECB president Mario Draghi will hold his monthly news conference at 8:30 am Eastern.

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Responses

  1. Here’s the gist of what ECB president Mario Draghi had to say at the conference:

    The European Central Bank’s monetary policy will remain “accommodative” for as long as needed, Mario Draghi told reporters. Draghi acknowledged that an expected eurozone recovery in the second half is “subject to downside risks.” Draghi said stronger global demand should help exports for the eurozone while improving confidence in financial markets should eventually feed through to the economy. Draghi dismissed any threat from inflation, noting that the price outlook is “broadly balanced” and that inflation expectations remain “firmly anchored.”


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