ECB Keeps Interest Rate Unchanged At 1.25%

As expected the main financing rate is unchanged at 1.25% (and by implication the Marginal Lending Facility remains at 2.00% while the Deposit Facility remains at 0.50%). The EURUSD is drifting modestly higher but nothing remarkable. The key continues to be the upcoming conference.

From the press release:

9 June 2011 - Monetary policy decisions

At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.25%, 2.00% and 0.50% respectively.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.

Comments

[NoRestForTheWicked]

I suppose if a currency is worth nothing, it should pay its holders nothing as well.

[acrabbe]

Unless Trichet has a religious/Jim Cramer moment during the press conference, it will mean NOTHING! "THEY KNOW NOTHING!"

[overmedicatedun...]

Libya now our newest WAR..Yemen, that makes 4!! Wars and rumors of wars.

[the not so migh...]

They are bombs of peace for Yemens own good.   Yes we Can!!!!

[Urban Redneck]

Yemen has been going on a while.  If your count is only at 4- then Yemen should be #3 and Libya #4.

[schizo321437]

Johnny Token raise?

[AUD]

Are they trying to outbluff the bluffers?

[scratch_and_sniff]

Get ready for the mother of all hatchet jobs if he dosent come through.