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ECB Cuts Rates By 25 bps, As Expected

Tyler Durden's picture




 

The ECB has cut the various relevant interest rates by 25 bps, in line with expectations, but not the 50 bps most likely needed to stem the crisis. Mario Draghi's second press conference begins in 45 minutes.

From the ECB:

8 December 2011 - Monetary policy decisions

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 1.00%, starting from the operation to be settled on 14 December 2011.

The interest rate on the marginal lending facility will be decreased by 25 basis points to 1.75%, with effect from 14 December 2011.

The interest rate on the deposit facility will be decreased by 25 basis points to 0.25%, with effect from 14 December 2011.

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 Central Bank
Directorate Communications
Press and Information Division
Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404
Internet: http://www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

 

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Thu, 12/08/2011 - 08:48 | 1957852 silver500
silver500's picture

Its not like artificially low rates are the cause of our economic problems…

Thu, 12/08/2011 - 08:49 | 1957856 Oh regional Indian
Oh regional Indian's picture

The thing is, who will move them back up first? Can anyone?

Negative real interest rates. Surely a harbinger of the end of something, if nothing else, the interest rate mechanism?

ORI

/the-plan/

Thu, 12/08/2011 - 08:51 | 1957861 silver500
silver500's picture

They can never rise again, we have reached the end of Keynesian policy

Thu, 12/08/2011 - 08:56 | 1957876 Popo
Popo's picture

...and thus begins the long, death spiral of the Euro.

Seee yaaaaa.....

Thu, 12/08/2011 - 08:57 | 1957879 silver500
silver500's picture

How long can Mario maintain a 100% rate cutting record?

Thu, 12/08/2011 - 08:49 | 1957854 GeneMarchbanks
GeneMarchbanks's picture

Hendry is jumping for joy right about... now.

Thu, 12/08/2011 - 09:44 | 1958004 Shizzmoney
Shizzmoney's picture

The collective "YES!!!!!!!111" you heard this morning was obviously from his offices.

Man, I wish I had a shit ton of cash to hedge against the Euro.  I'd back up the money truck on Hendry's bet.

The thing is, the foundation of Hendry's is bet is against "champagne socialism", where the actual brilliance in the hedge is found in the predictible stupdity of political leaders and greed of technocratic bankers.

Thu, 12/08/2011 - 08:50 | 1957858 Iriestx
Iriestx's picture

EUR is fixed, AGAIN (for the 30th time this month)!  Rally on!

Thu, 12/08/2011 - 08:50 | 1957859 Dr. No
Dr. No's picture

 but not the 50 bps most likely needed to stem the crisis.

Do people really thing 50 BP will cure the problem??

Thu, 12/08/2011 - 08:57 | 1957877 achmachat
achmachat's picture

it would cure my personal "problem" as I'd have to pay less to the bank every month for my variable interest rate loan ;-)

 

Thu, 12/08/2011 - 08:50 | 1957860 zilverreiger
zilverreiger's picture
Webcast of the press conference 8 December 2011

Press conference following the meeting of the Governing Council of the European Central Bank on 8 December 2011 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET:

  • Introductory statement by Mario Draghi, President of the ECB.
  • Question and answer session. Registered journalists pose questions to Mario Draghi, President of the ECB, and to Vítor Constâncio, Vice-President of the ECB

http://www.ecb.int/press/tvservices/webcast/html/webcast_111208.en.html

Thu, 12/08/2011 - 08:54 | 1957870 DavidC
DavidC's picture

Don't you just love it - drop 25 bp, which should cause the Euro to fall, but set the expectation at 50 so that when 25 is announced, the Euro goes UP!

DavidC

Thu, 12/08/2011 - 09:02 | 1957888 GeneMarchbanks
GeneMarchbanks's picture

It's all about locking in the competitive devaluation game. You in? Let the games begin.

The Squid rewards the good boys & girls to do as told...

Thu, 12/08/2011 - 08:56 | 1957875 firstdivision
firstdivision's picture

http://capitalcontext.com/intraday/intraday-context/ This is stuck, and not updating since 4:15am :( 

Thu, 12/08/2011 - 08:57 | 1957878 LookingWithAmazement
LookingWithAmazement's picture

It will not be the end of the World when the Federal Reserve Note or the Euro collapses.

http://presscore.ca/2011/?p=4009

Merry Christmas. Boring world we live in.

Thu, 12/08/2011 - 09:09 | 1957887 Flounder
Flounder's picture

BFD.  BTPs are still 25bp off the lows at 6.13.  Still Fckd.

Thu, 12/08/2011 - 09:02 | 1957889 sabra1
sabra1's picture

Reproduction is permitted provided that the source is acknowledged.

o.k., o.k.,  so janet napolitano and barney frank reproduced a little timmy g.!

Thu, 12/08/2011 - 09:16 | 1957921 j0nx
j0nx's picture

And the dollar is down 20+ pips already against the Euro on this news? We live in bizarro universe.

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