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ECB Keeps Rates Unchanged As Expected

Tyler Durden's picture




 

No surprise in today's ECB announcement. The Press conference in 45 minutes is also expected to be largely a non-event, although we will be delighted to hear Mario's response to the quality of Europe's collateral backing the trillions in fresh discount window borrowings spent on buying up Spanish and Italian bonds, which are gradually going underwater.

From the ECB:

PRESS RELEASE
4 April 2012 - 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 1.00%, 1.75% and 0.25% 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.

 

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Wed, 04/04/2012 - 07:49 | 2315765 Squishi
Squishi's picture

this new QE will be bigger than the ECB

Wed, 04/04/2012 - 07:58 | 2315787 Poor Grogman
Poor Grogman's picture

wake me up when its over ten trill, with.. nothing as collateral...

Wed, 04/04/2012 - 07:53 | 2315774 Dick Darlington
Dick Darlington's picture

Austria's CB join Bundesbank in collateral decision

April 4 (Bloomberg) -- The Austrian Central Bank will join
Germany’s Bundesbank in rejecting as collateral bank bonds
guaranteed by member states receiving aid from the European
Union and the International Monetary Fund.
     “We will do that as well,” Christian Gutlederer, a
spokesman for the Vienna-based institution, said by phone today.
“We are talking about minimal amounts. It will have very little
impact on overall collateral.”
     The Bundesbank was the first of the region’s central banks
to make use of a change in European Central Bank collateral
rules announced on March 23. The ECB no longer obliges members
to accept bank bonds guaranteed by governments “whose credit
assessment does not comply with the benchmark for establishing
its minimum requirement for high credit standards.”
     The decision means banks in Europe’s three bailed-out
countries -- Greece, Portugal and Ireland -- will no longer be
able to use such bonds to obtain funding through subsidiaries in
Germany and Austria.

Wed, 04/04/2012 - 12:02 | 2316615 alfman
alfman's picture

and the other CBs will follow soon .....

Wed, 04/04/2012 - 08:16 | 2315799 HD
HD's picture

LTRO 3 is on the way...

Wed, 04/04/2012 - 08:22 | 2315838 Overdrawn
Overdrawn's picture

Someone said

 

"When buying and selling are controlled by legislation, the first things to be bought and sold are legislators".

Wed, 04/04/2012 - 08:23 | 2315844 asteroids
asteroids's picture

The ECB is soooo screwed. What if recovery does NOT come in 2012 or 2013 but inflation continues to rise? They'll have stagflation or worse.

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