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ECB Keeps All Rates Unchanged

Tyler Durden's picture





 

For once, the vast majority of economists was correct, with 62 of 66 predicting accurately what the ECB would do today: nothing. At least so far - moments ago Mario Draghi's central bank just announced no cuts across all three major rates.

From the press release:

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.

European stocks not happy, and the EURUSD engaging in its usual acrobatics first surging then plunging...

... perhaps because there is still a chance Draghi may announce the end of SMP sterilization in the press conference in 45 minutes, which would free up some liquidity, but hardly have the desired impact.

 


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Thu, 02/06/2014 - 08:52 | Link to Comment edotabin
edotabin's picture

What a Drag-hi! I thought change was good.

Thu, 02/06/2014 - 08:54 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

My heart is racing over here.....who could have seen that coming?

Thu, 02/06/2014 - 08:55 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Same as it ever is...

Thu, 02/06/2014 - 08:59 | Link to Comment Ghordius
Ghordius's picture

meh. last time there were some 60 out of 70 economists (including yours truly - though not an economist) predicting no change, and the ECB did some cosmetic slashing down

Thu, 02/06/2014 - 09:00 | Link to Comment negative rates
negative rates's picture

Economists, correct, it's unreal.

Thu, 02/06/2014 - 08:56 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

<-- Central Bank manipulate EVERYTHING

<-- Central Bank lie about why

Which is greater sin of Central Bank Cabal

Thu, 02/06/2014 - 09:01 | Link to Comment y3maxx
y3maxx's picture

...Zero rates....Only way to pave way for Economic Recovery thru Wars.

Thu, 02/06/2014 - 09:02 | Link to Comment Ghordius
Ghordius's picture

the greatest sin of fiat fractional reserve banking / central banking is that only few understand it. lots of comments over the last 100 years about this fact

Thu, 02/06/2014 - 09:17 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

"It is well for that citizenry of nation are not understand banking and money system, if they are, I believe there would be revolution before Tuesday morning." Henry Ford, founder of Ford Motor Company

Thu, 02/06/2014 - 09:31 | Link to Comment The Dunce
The Dunce's picture

No new is good news.  I'm all in on cat food and bullets.  Riding high, baby.

Thu, 02/06/2014 - 08:52 | Link to Comment Ghordius
Ghordius's picture

"European stocks not happy". so what. getting the rates further down would have been even sillier than last time

Thu, 02/06/2014 - 09:02 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

so what.

 

So.....let's dance.

http://www.youtube.com/watch?v=cwYJxNnABp4

Thu, 02/06/2014 - 08:54 | Link to Comment BandGap
BandGap's picture

Guessed "B".

Really, give it a week and we'll have another scintillating announcement meant to save the EU.

Thu, 02/06/2014 - 09:09 | Link to Comment Ghordius
Ghordius's picture

"save the EU"? from what?

Thu, 02/06/2014 - 09:16 | Link to Comment johny2
johny2's picture

from the banking oligarchy that it is rulling it through its political parties.

Thu, 02/06/2014 - 09:18 | Link to Comment Ghordius
Ghordius's picture

interesting. political parties? do you know that we have - in the eurozone alone - some 100+ political parties? you have to be more specific, here. or perhaps stop projecting

Thu, 02/06/2014 - 09:24 | Link to Comment johny2
johny2's picture

the rulling political parties. specific enough?

Thu, 02/06/2014 - 12:35 | Link to Comment Ghordius
Ghordius's picture

still not there. in each of the 18 countries of the eurozone? often it's coalitions, so the number is in the ballpark of 25-30

Thu, 02/06/2014 - 08:56 | Link to Comment NoDebt
NoDebt's picture

When is Draghi going to get the message and start unsterilized (QE-style) bond purchases?  This guy just won't take a hint.  His handlers grow impatient.

Thu, 02/06/2014 - 09:14 | Link to Comment Ghordius
Ghordius's picture

perhaps I've not repeated enough this fact: the FED has a top-down organization on several levels (including the NY-FED)

the ECB has a bottom-up org

18 votes come from the national bank governors. Draghi and the four others are not the ones really setting policy, their job is only to coordinate and communicate

so Draghi's "handlers" are his collegues, like the governor of the Banque of France, and the governor of the BuBa, and the governor of the Bank of Italy, etc.

Thu, 02/06/2014 - 09:58 | Link to Comment NoDebt
NoDebt's picture

So you're saying he's just following orders.

Yeah, we have votes in the Fed Board or Governors over here, too.  Bernanke/Yellen don't set policy all by themselves.  Somehow we still arrived where we arrived anyway.

Thu, 02/06/2014 - 12:37 | Link to Comment Ghordius
Ghordius's picture

interesting. your way of reasoning seems to imply that there are always "orders from above". no compromise, no politics, no diplomacy, nothing

Thu, 02/06/2014 - 14:09 | Link to Comment edotabin
edotabin's picture

diplomacy and compromise do seem to be getting rare-er and rare-er

Thu, 02/06/2014 - 08:56 | Link to Comment dwayne elizando
dwayne elizando's picture

Freegold by 2015?

Thu, 02/06/2014 - 08:59 | Link to Comment youngman
youngman's picture

But they still get a nice lunch out of it...

Thu, 02/06/2014 - 09:03 | Link to Comment negative rates
negative rates's picture

Have breakfast with yourself, have lunch with your friends, and have supper with your enemies.

Thu, 02/06/2014 - 09:02 | Link to Comment Peter Pan
Peter Pan's picture

Be on the lookout for Draghi's 50 year plan for Europe.

The first 50 year plan is now being baked for Greece.

I can now see the headlines in 50 years time (if we don't get wiped out before then):

Headline will be, "Plan to be extended by 50 years".

Thu, 02/06/2014 - 09:04 | Link to Comment Sudden Debt
Sudden Debt's picture

Gold is up...

silver is up...

SO CLEARLY THEY MADE THE RIGHT DECISION!!

DON'T ARGUE WITH A GOOD THING OR WHEN IT'S GONNA GET YOU LAID!

Thu, 02/06/2014 - 09:09 | Link to Comment GetZeeGold
Thu, 02/06/2014 - 09:09 | Link to Comment Peter Pan
Peter Pan's picture

I don't want to be a killjoy but why don't you give the boys upstairs a bit of time to prepare for the usual smackdown, 3....2....1.....

 

Thu, 02/06/2014 - 09:16 | Link to Comment Sudden Debt
Sudden Debt's picture

Janet likes to sleep in late till noon so that won't happen for at least a few hours.

Thu, 02/06/2014 - 09:17 | Link to Comment negative rates
negative rates's picture

Is it time for that happy meal already. I know it's paid for, but the ants in my pants are rather uncomfortable.

Thu, 02/06/2014 - 09:06 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

once again the sociopaths in NY r painting the tape in the phony paper Silver maket at the open trying to push back below $20...

pure coincidence of course....

http://www.kitco.com/charts/livesilver.html

Thu, 02/06/2014 - 09:15 | Link to Comment q99x2
q99x2's picture

How bout some financial news.

Thu, 02/06/2014 - 09:17 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Turn into CNBC.....they'll hook you right up. It'll make more sense if you're drinking heavily.

 

I'm sure they'll appreciate it....they could really use the ratings.

Thu, 02/06/2014 - 09:19 | Link to Comment Sudden Debt
Sudden Debt's picture

Slight chance of snow... NEED I SAY MORE?!

Thu, 02/06/2014 - 09:20 | Link to Comment negative rates
negative rates's picture

In the north is going to be cold, in the east is going to be dry, in the west it is going to rain, and in the south it is going to be mild. How much more news do you need? If you snooze, you lose??

Thu, 02/06/2014 - 09:11 | Link to Comment shankster
shankster's picture

Hee hee, ha ha!

Thu, 02/06/2014 - 10:00 | Link to Comment Hubbs
Hubbs's picture

Running out of wiggle room,  Mr Draghi?

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