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ECB Keeps Rates Unchanged Despite Record Low Loan Creation
As was broadly expected, and contrary to November's surprising announcement, the ECB kept its rates unchanged.
9 January 2014 - 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 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.
No response in the EURUSD. In 45 minutes Mario Draghi will explain just how he plans on reviving Europe's moribund and record low loan creation.
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maybe they should try to get consumer loan rates down...
7 to 10% interest rates are still pretty steep concidering the banks get it for free...
Simple arbitrage and power in rule of jungle - crony is borrow at 0%, lend at 20%. Big Bankster is never repay, but is extract every dollar from citizenry.
Banks only need to borrow a fraction of what they lend. If CRR for Eurozone banks is 10% (like in the US) their borrowing costs are close to zero. Bank lending rates are hardly impacted by their own borrowing costs. They are dictated by the risk of default by the borrower.
make it 1%.
http://en.wikipedia.org/wiki/Reserve_requirement
Interest rate is not create job, is not feed family, is not produce wealth. When Central Bank is worry about loan creation, please to citizenry, WAKE UP! Central Bank is not concern of people, or is even concern of wealth creation, but simple wealth EXTRACTION for benefit of Bankster class. No longer is discussion in cigar fill room, but is so bold to announce in pubic arena is sign of absolute power of Central Bank. Boris feel like woman about to be rape by loud mouth rapist who is describe every evil act and intent in advance!
... maybe Boris is paranoid fool...
Mario...........blah blah blah, give me millions, let me keep the crown another day.
that's because inflation is so low... yeah... to bad the european population says otherwise...
Its called deleveraging and its quite deliberate and neccessary in many places in Europe. On the other hand deleveraging becomes a concern when it happens too fast, which appears to becoming the case. However, there is not much the ECB can do sitting at their 0.25% base rate anyway unless they go unconventional which Germans will allow only over their dead bodies. And given the outlook of the ECB AQR and stress test European banks will shy away from expanding their loan book in any case similar to the experience with the quite useless EBA 9+ exercise, which not only caused the double-dip recession in the Eurozone but also cost the EBA much of its reputation and confidence that the market might have had in it before...