This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Investors look to today’s ECB’s monetary policy meeting knowing full well that the central bank will maintain the status quo. At best, the ECB will only review the impact of its monetary policy so far.
In terms of any surprises, the chances are minimal.
From a monetary policy perspective, the central bank will maintain interest rates at 0%. The marginal lending rate is likely to remain at 0.25% and the deposit facility rate at -0.50%. The central bank will also keep the asset purchases at the current 20 billion euro a month.
The decision to leave rates and asset purchases unchanged comes as the governing council prefers to assess the impact. The ECB last made changes to its monetary policy in September 2019.
This was done in response to sluggish inflation and slowing growth. This came at a time when the German economy was particularly hit hard. Being the growth engine for Europe, the decision came out as a timely response to stoke growth.
Regarding the larger scope of the monetary poli...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.