ECB Reconfirms Very Accommodative Policy Stance
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European Central Bank left its interest rates and asset purchases unchanged on Thursday, as the resurgence of the coronavirus infections and continuing lockdowns have damped the prospects of an economic rebound later this year.
The Governing Council, led by ECB President Christine Lagarde, left key interest rates unchanged and maintained the size of the pandemic emergency purchase programme, or PEPP, at EUR 1,850 billion.
The main refi rate was held steady at a record low zero percent and the deposit rate was kept at -0.50 percent. The lending rate was held steady at 0.25 percent.
[VIDEO] Lagarde adds to the Euro dovishness [VIDEO] Lagarde adds to the Euro dovishness
Joe Perry February 8, 2021 7:10 PM
Accommodative monetary policy stance remains essential Share:
ECB President Christine Lagarde spoke earlier in front of the European Parliament and told members “Accommodative monetary policy stance remains essential!” In the charts today, EUR/USD is testing a confluence of resistance between 1.2050 and 1.2090.
Given the technical and Christine Lagarde’s dovishness, watch for bears to enter the market near current levels and look to test Fridays lows. TAGS:
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Synopsis
Yields on benchmark bonds have risen 22 basis points since the budget announcement that the government would borrow more this year and of an elevated borrowing calendar next year. When bond yields rise, prices fall.
Reuters
The gauge recouped part of its losses on select profit booking by public sector banks.
Mumbai: Bond speculators are testing the Reserve Bank of India’s unwritten objective of not interfering in the bond market ahead of a monetary policy review.
Yields on benchmark bonds have risen 22 basis points since the budget announcement that the government would borrow more this year and of an elevated borrowing calendar next year. When bond yields rise, prices fall.
cautious because that s when things tend to swim up and hit us out of nowhere but the reality is this. we see a fed that s accommodative, and a u.s. economy that s finally responding so, to me, the market will likely continue a lot of its momentum and any pullbacks that should be bought. charles: here s the thing though, it s one thing for the market to do what it s been doing but the underlying economy seems to be gaining momentum. certain areas in this economy, for instance the housing data we ve seen recently. there are signs that business investment outside of these big factories could also start to pick up despite how long in the tooth this rally has been. trials, last year on this very program it came on saying you need to divide the market, it was down 20%. i said then recession was not in actuality, it wouldn t happen. it didn t happen and it s not going to happen. i will take a a more bearish not bearish but cautious route.