ECB Leaves Rate Unchanged At 1.50% - Full Statement

Tyler Durden's picture

Just out from the ECB:

6 October 2011 - Monetary policy decisions

 

At today’s meeting, which was held in Berlin, 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 1.50%, 2.25% and 0.75% 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.

EURUSD, ironically, not too happy about lack of 50 bps cut. Now the market looks for JCT to say something at the press conference at 45 minutes although it may be quite disappointed.

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ZeroPower's picture

'THEY NEED TO OPEN THE DISCOUNT WINDOW!'

firstdivision's picture

Didn't Ben teach them anything about supporting stocks regardless of the consequences? 

firstdivision's picture

At least Belgium had the cognitive brain damage required to listen to Timmay and Ben's advice.

wang's picture
wang (not verified) Oct 6, 2011 7:54 AM

Give it time ...  Goldman's Dragi once he takes the helm will get those rates pounded down to zero

Mae Kadoodie's picture

JCT  "Let them eat cake".

DormRoom's picture

sigh.. more money printing causes capital to chase speculative trades, distorts interest rates, leaving less capital for 'real' productive parts of the economy.

 

ECB should be lowering interest rates, but it can't because of all the money printing over the last 3 years, that is chasing commodities, pushing up input costs, from overheated emerging markets.

 

 

swissaustrian's picture

The interest rate gap to the USD stays at 1.5% but the the EUR sells off... That´s the new normal...

Racer's picture

At least they are giving savers a tiny bit of money, not enough to keep up with inflation but better than the US and UK!

swissaustrian's picture

It seems that they really stick to their rule to monitor the Eurozone as a whole. Germany needs a rate hike. The PIIGS need zero rates. So keeping rates unchanged is the compromise.

RobotTrader's picture

Gold also hammered on the announcement.

Why don't you guys start cheering for more easing, more Fed meddling and intervention, higher stock prices, etc. so we can get gold to go to $2,000??

firstdivision's picture

Cause some of us want to buy cheap physical.  Call me a value investor.  I'm praying that it falls to $100/oz.

DormRoom's picture

gold got hammered cause EUR-USD went down on the news.

 

The market is highly correlated with the USD now. The higher it goes, USD carry trade gets unwound, and selling.  If it goes lower, big money hops back on the carry trade, buys, and gets a risk hard on.

firstdivision's picture

So the Euro sells off on keeping rates the same, and rose on Belgium willing to use their citizens hard earned money to absorb Dexia...sure this makes perfect sense....

aus_punter's picture

good riddance Trichet - enjoy your tax payer funded retirement you useless cunt

aus_punter's picture

good riddance Trichet - enjoy your tax payer funded retirement you useless cunt

RobotTrader's picture

Trichet singlehandedly triggered the entire Euro crisis with his rate hikes last year.

He loves unstable capital markets, a weaker currency, and financial turmoil.

Global Hunter's picture

I'm not a regular RoboTrader basher I get what you do, I understand where you're coming from but I have to say blaming the state of the global economy on Euro rate hikes last year is like saying the reason its dry in the desert is because it didn't rain on October 5th between 3-4:00 pm.

qussl3's picture

All JCT has done is set the stage for a Eurocrat takeover.

As long as he does the LTROs for at least 6-12mths, unlimited, there is little chance of a lehmann type event.

 

firstdivision's picture

Timmay just finished calling JCT.  Here is a snippet of the call http://www.youtube.com/watch?v=kfog8WjfKyo

BarryG's picture

Interesting comments from the former Polish PM this week, warning of German influence in Europe....

 

http://germanywatch.blogspot.com/2011/10/former-polish-pm-warns-of-german-threat.html

SmoothCoolSmoke's picture

I am making so much dough shorting the Euro it's scary.  FX leverage..... dangerous as hell, but when it is working for you: wow!

firstdivision's picture

A smart man would be taking their chips off the table shortly.  The US will follow suit soon and the dollar will plunge. 

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