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ECB Keeps Rates Unchanged, As Expected

Submitted by Tyler Durden on 12/05/2013 08:47 -0400

Unlike last month's surprising rate cut which caught about 95% of forecasters wrong-footed, today the ECB proceeded as expected, and did not cut rates, keeping the MRO rate at 0.25%, the Interest Rate at 0.75%, and the Deposit rate at 0.00%. From the ECB:

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 0.25%, 0.75% and 0.00% 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.

Now all eyes on Draghi at the press conference in 45 minutes, where Draghi is expected to lower his assessment of European growth once more, and potentially announce some additional non-standard measures.

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Thu, 12/05/2013 - 08:50 | 4217137 GetZeeGold

Who could have seen it coming really?

Thu, 12/05/2013 - 08:53 | 4217144 Ghordius

agree, yet last time I was utterly convinced the ECB would refrain from cosmetic moves

Thu, 12/05/2013 - 09:12 | 4217169 SafelyGraze

"the Governing Council of the ECB decided that the interest rate .. will remain unchanged at 0.25%, 0.75% and 0.00% respectively"

this cannot possibly be correct

a council does not "decide" what the interest rates shall be

it is the market that determines that via its unseen hand

various individuals and entities all independently bid on the future value of money

the article should have said "the ecb observed that" rather than "decided that"

if the ecb actually decided what interest rates would be, then that would be evidence of rigging those rates rather than allowing the market force of independent agents to act freely

hugs,
adamsmith

Thu, 12/05/2013 - 09:14 | 4217177 BoNeSxxx