For once, the vast majority of economists was correct, with 62 of 66 predicting accurately what the ECB would do today: nothing. At least so far – moments ago Mario Draghi’s central bank just announced no cuts across all three major rates.
From the press release:
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 0.25%, 0.75% and 0.00% 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.
European stocks not happy, and the EURUSD engaging in its usual acrobatics first surging then plunging…
… perhaps because there is still a chance Draghi may announce the end of SMP sterilization in the press conference in 45 minutes, which would free up some liquidity, but hardly have the desired impact.