In Stunning Move, ECB Cuts Rates By 25 bps, Euro Plunges

Tyler Durden's picture

Perhaps it is not surprising that with the absolute majority of economists and strategists, or 67 of 70, predicting no rate cut by the ECB, this is exactly what the ECB just did, when in a stunning move it cute rates for both the main refi rate and the marginal lending facility by 25 bps, to 0.25% and 0.75% respectively. And there is your reaction to Europe's encroaching deflation.

From the ECB:

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:


The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.25%, starting from the operation to be settled on 13 November 2013.


The interest rate on the marginal lending facility will be decreased by 25 basis points to 0.75%, with effect from 13 November 2013.


The interest rate on the deposit facility will remain unchanged at 0.00%.


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.

The Euro will need a bigger chart to show just how far it tumbled as a result of the stunner:

But... But... that MNI source yesterday said...

And now, tune back in in 40 minutes for Draghi's press conference.

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Zero_Sum's picture

Cuz things are so fucking good in Europe right now...

GetZeeGold's picture



Thought for sure we'd see an in your face rate hike!

Zero_Sum's picture

...on another note, this is mana from heaven for the Twitter IPO. BTFATH, bitchez. I'm sure this will end well.

Sudden Debt's picture

just imagine twitter adds 10 more advertisings per tweet... BILLIONS!! TRILLIONS!!!

Does twitter management have a facebook page we can visit to followup on the progress?

Chris Jusset's picture

The ECB is extremely jealous of all the USA's numerous bubbles ... so it wants to join the bubble-party.



dontgoforit's picture

Take a real bath in these bubbles - an acid wash, and it ain't orange barrel.

Stackers's picture

Euro was getting too strong for the German's liking....


fine by me, just saved me $40k on a deal I am working on with some Germans right now :) Glad I didn't lock in those euros yesterday

Chris Jusset's picture

At 0.25%, the ECB has reached the lower limit of its rate cutting ability.

Ghordius's picture

yeah. if you hear a strange sound: that's me hitting my head against my desk. so damn unnecessary, that move

Sudden Debt's picture


just ignore the all time high bankruptcy numbers from oktober.... that's just survival of the fitest...

Beastmanager's picture

End of austerity? That would be good news IMO

GetZeeGold's picture



Dude.....knock it off. He's gonna slam his tray on table and leave if you keep it up.


Max Damage's picture

EU is an utter mess. ECB just proved it

Cacete de Ouro's picture

Fear changes everything in ECB headquarters:

Mario in the Mist:

Sudden Debt's picture



The streets hear it won't and the insiders will have had the other memo also a few days ago!


fonzannoon's picture

European stocks broke new highs on a strong euro. imagine what they will do with a weaker euro. 

5 years of printing money and rate cuts and gold just sits there. wow. 

bustdrs's picture

Golds not sitting there its moving into strong hands at bargain prices to keep the impression this shit is ok.
It's pretty fucken far from ok.
Do you still think bankers will end up with the over 1k p/oz miners after the last push down in December? Sub 1150??? What else can they do? Let it go up.

Running On Bingo Fuel's picture

Or maybe change view from minute to daily? And it looks like any other day... I don'know..

Go bitcoin!


101 years and counting's picture

no cut sent stocks higher.  cut sends stocks even higherer.  makes sense in a ponzi world

Let The Wurlitzer Play's picture

Now its official, everyone is backed against a wall.

Racer's picture

Here's a good one...

"ECB Cuts Rates Unexpectedly as Low Inflation Threatens Recovery

By Christopher Lawton FRANKFURT--The European Central Bank unexpectedly cut its main interest rate to a fresh record low close to zero, reflecting heightened worries in Europe that dangerously low inflation threatens the region's tepid economic recovery."


Dangerously low inflation???!! WTF, they are scared sh!tless, it isn't the people who are worried about low inflation, it is the bwanksters...

dontgoforit's picture

I guess in a couple years we can all pat ourselves on the back for predicting how this is going to turn out.  No joy in being right in some cases.  Foolish central bankers.  You can't borrow your way to prosperity.  I think my dad told me this when I was maybe 10 or 12.  I now understand why he was so cynical of politics, politicians and central bankers.

jerry_theking_lawler's picture

growth = inflation. right? low inflation = x can solve this logically for x.

eddiebe's picture

I seriously doubt that the banksters are scared shitless. In fact they are on track to consolidate power and are taking over the word lock stock and barrel.

29.5 hours's picture



The CNBC headline says European stocks sharply higher *ahead* of ECB decision. They seem to have an odd concept of time.

Edit: Looks like someone had a little talk with someone else. The headline now reads: "

Europe stocks surge after ECB rate cut"




FiatFapper's picture

What happens if central banks introduce negative interest rates? Will customers have to pay banks interest for depositing their own money?

Racer's picture

They already do by putting money in a bank that pays little or no interest you get less out in purchasing power because of inflation... yeah real inflation not just pretend made up figures stuff

MisterMousePotato's picture

I seem to recall someone on this forum claiming that this (viz., charging depositors for safeguarding their money) was actually being done in (?) Switzerland (?) some time back. Maybe eight or ten months ago?

dontgoforit's picture

Or you can get 'Cyprus'd' as a banking 'fee.'

PT's picture

Bank fees have exceeded interest paid on my bank accounts for over 20 years.  Yes, I would like to meet a boss who pays cash.  Sadly, I still haven't quite figured out how to create customers.

Oh yeah, around that time the govt privatized the state banks, deregulated the banking industry and told us "more competition will make banking cheaper."  Guess I should have borrowed lots of money so I could have "cheaper" banking. 

asteroids's picture

Fucking weasel Mario just fucked the bond and FX markets. That'll make a lot of guys happy today. Anything to preserve the precious DAX.

TheBoyPlunger's picture

Rodents of unusual size? I don't believe they exist  *CHOMP*

dontgoforit's picture

Yeah, the vermin are about to eat the cat.

Iam Yue2's picture

Stunning - Why? Sending a signal, otherwise fairly meaningless as regards real economy, credit etc. Draghi will now simply stress downward risk, and tell us that he will be prepared to use all available tools (left).

It did not take a rocket scientist to see that Europe had not turned a corner, and that deflation is set to cripple the periphery.

max2205's picture

Cash is trash....take out a loan today...dont pay it back tomorrow

Calculus99's picture

How original.

Proves how the CBs have basically run out of ideas when the only thing they can do is to cut rates, again. But this time it's meaningless, 50 to 25 basis points.

Give it 6 months and they'll probably wonder why nothing has changed in the economy because of the rate cut. But fear not, the committee wil come up with another bankrupt idea - cut them to zero...

dontgoforit's picture

Germany and France oughta' just opt-out before they're utterly destitute.  Tell Draghi and the boys to take a hike.

PT's picture

The people will get fatter if I eat more chocolate.

Why don't they want to eat the chocolate after I have finished eating it? 

The Final Countdown's picture

I expect another round of OMT within 6 months from now. The ECB is basically copying the Fed with a few months latency, in the end it all comes down to ZIRP and print, print, print. Anyone still not convinced this system is on its last legs? That we're all going to 'grow the economy out of this mess'?

hugovanderbubble's picture



Target 7400

CHX's picture

muppet milking 101 day by day, 24/365. 

Urban Redneck's picture

Do they allow muppets 100:1 leverage in f/x markets, or do you have to a bitch bankster to get shafted like that?

RiverRoad's picture

Finally.  The farce hits the fan.

thismarketisrigged's picture

yup, these are your investor markets.


the dax for example went from up 15 to up 90 before you could blink.


dow futures went from -1 to up 50 before you can blink.


yup, these are your free investor markets.


things are so great in europe and the u.s, if u dont believe me, listen to jim cramer, he is always right and knows exactly what he is talking about.

thismarketisrigged's picture

i hope mario draghi is killed, that guy is the definition of a fucking prick douchebag.


someone take this asshole out, and then go to bernanke.

MarsInScorpio's picture



Hear that knocking on your door? It's DHS wanting to talk to you about your "threats" to murder Draghi and Bernanke.


Are you not aware that the NSA reaqds this blog in real time - and is doing this to protect us from "terrorists" like you . . . ?


Now, get your guns out of the house before they break down the door.


And don't ask to see a Search Warrant - they are the law. Just ask the Secret Court who issued a Secret Warrant in a Secret Session citing Secret Rulings to Secret US Attorneys who direct the Secret Police wearing masks and other "you can't identify me" combat clothing and body armor.


Like Obama said, he's "going to put the fear of God" into all of us.


And you can be assured that the White African-American psycho sociopath and pathological liar means it.


MsCreant's picture

Gold just did something weird, like a flash hardon or something. Coming back down.

Spigot's picture

It appears our dear cousins on the Continent have just "mixed it up" as they say. Looks like Dahgi just put his member in an energized light socket. All of Euroland just lit up. We are stumbling into intersting times.

StychoKiller's picture

Now how would a sweet young lady such as yerself know anything about hardons?  :>D

Spigot's picture

She packs heat. I'd be a bit more demure if I was you.