forex trading outlook today - eurozone interest rates november 2011 : The European Central Bank (ECB) has unexpectedly cut eurozone interest rates to 1.25% from 1.5%.
There had been calls in some quarters for the bank to cut rates to help boost demand as the region struggles to contain the debt crisis. G20 leaders are meeting in Cannes on Thursday and Friday, with the crisis topping the agenda.
Italian Mario Draghi will give his first news conference as ECB president shortly. Mr Draghi took over as president of the bank this week, replacing Jean-Claude Trichet, who held the post for eight years.
Last month, the bank announced new, one-year emergency loans to banks to help them deal with the debt crisis. It also said it would help the banks by spending 40bn euros (£35bn) buying certain assets from them.
The ECB raised interest rates from 1.25% to 1.5% in July.
The bank was criticised in some quarters for raising rates given weak growth and lack of confidence in the eurozone economy.
But Mr Trichet defended the move, saying the primary role of the bank was to keep inflation under control. Eurozone inflation currently stands at 3%, well above the ECB's target of close to but below 2%.
There had been calls in some quarters for the bank to cut rates to help boost demand as the region struggles to contain the debt crisis. G20 leaders are meeting in Cannes on Thursday and Friday, with the crisis topping the agenda.
Italian Mario Draghi will give his first news conference as ECB president shortly. Mr Draghi took over as president of the bank this week, replacing Jean-Claude Trichet, who held the post for eight years.
Last month, the bank announced new, one-year emergency loans to banks to help them deal with the debt crisis. It also said it would help the banks by spending 40bn euros (£35bn) buying certain assets from them.
The ECB raised interest rates from 1.25% to 1.5% in July.
The bank was criticised in some quarters for raising rates given weak growth and lack of confidence in the eurozone economy.
But Mr Trichet defended the move, saying the primary role of the bank was to keep inflation under control. Eurozone inflation currently stands at 3%, well above the ECB's target of close to but below 2%.
No comments:
Post a Comment