Today, the ECB announced as expected that it will cut its deposit rate from -0.4% to -0.5%. All other monetary policy rates remain unchanged. Additionally, the bank will start another round of quantitative easing on 1 November 2019, buying EUR 20bn per month “as long as necessary”. This is below the consensus expectation of economists of EUR 30bn but to many economists’ surprise there was no end date for QE given. In reaction to these announcements, the Euro declined by about 0.5% against the US Dollar and European stocks rose.
Draghi pushes the string harder
Draghi pushes the string harder
Draghi pushes the string harder
Today, the ECB announced as expected that it will cut its deposit rate from -0.4% to -0.5%. All other monetary policy rates remain unchanged. Additionally, the bank will start another round of quantitative easing on 1 November 2019, buying EUR 20bn per month “as long as necessary”. This is below the consensus expectation of economists of EUR 30bn but to many economists’ surprise there was no end date for QE given. In reaction to these announcements, the Euro declined by about 0.5% against the US Dollar and European stocks rose.