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ECB Leaves Rate Unchanged At 1.50% - Full Statement

Submitted by Tyler Durden on 10/06/2011 07:49 -0400

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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Thu, 10/06/2011 - 08:00 | 1744725 Fips_OnTheSpot

DAX -100pt in "one second" --> http://s14.directupload.net/images/111006/9f72rwsv.png

Thu, 10/06/2011 - 09:52 | 1745193 covert

keep the rates up.

http://expose2.wordpress.com

Thu, 10/06/2011 - 07:52 | 1744726 ZeroPower

'THEY NEED TO OPEN THE DISCOUNT WINDOW!'

Thu, 10/06/2011 - 07:53 | 1744729 firstdivision

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

Thu, 10/06/2011 - 07:58 | 1744741 HelluvaEngineer

Sadly, this made me laugh.

Thu, 10/06/2011 - 08:19 | 1744790 firstdivision

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

Thu, 10/06/2011 - 07:54 | 1744732 wang (not verified)

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

Thu, 10/06/2011 - 07:56 | 1744736 Mae Kadoodie

JCT "Let them eat cake".

Thu, 10/06/2011 - 07:58 | 1744739 DormRoom

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.

Thu, 10/06/2011 - 07:58 | 1744743 swissaustrian

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

Thu, 10/06/2011 - 08:01 | 1744752 Racer

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!

Thu, 10/06/2011 - 08:06 | 1744761 swissaustrian

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.

Thu, 10/06/2011 - 08:04 | 1744757 RobotTrader

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??

Thu, 10/06/2011 - 08:06 | 1744760 firstdivision

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

Thu, 10/06/2011 - 08:12 | 1744773 DormRoom

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.

Thu, 10/06/2011 - 08:04 | 1744758 firstdivision

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....

Thu, 10/06/2011 - 08:06 | 1744762 aus_punter

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

Thu, 10/06/2011 - 08:06 | 1744763 aus_punter

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

Thu, 10/06/2011 - 08:09 | 1744768 RobotTrader

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

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

Thu, 10/06/2011 - 08:18 | 1744789 Global Hunter

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.

Thu, 10/06/2011 - 08:22 | 1744796 qussl3

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.

Thu, 10/06/2011 - 08:17 | 1744786 firstdivision

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

Thu, 10/06/2011 - 08:20 | 1744792 BarryG

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

Thu, 10/06/2011 - 08:36 | 1744845 SmoothCoolSmoke

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!

Thu, 10/06/2011 - 09:11 | 1744995 firstdivision

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

Wed, 10/12/2011 - 10:23 | 1765555 karmete

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Wed, 11/09/2011 - 11:10 | 1860761 karmete

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ECB Leaves Rate Unchanged At 1.50% - Full Statement

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