Forex Marketz Daily Forex News – Fully Markets Update
Just minutes ago, the European Central Bank (ECB) kept its main interest rate at a record low and unchanged. Markets are still on edge as we are all waiting on Mario Draghi’s press conference, scheduled in about an hour. The markets are expecting a full blown quantitative easing program (QE) to be announced.
The ECB kept its main rate at 0.5 percent and its marginal lending facility at 0.30 percent. Its deposit facility rate was kept at -0.20 percent.
At the ECB press conference Chairman Mario Draghi just announcde a QE program to purchase Eurozone government bonds as well as private sector debt. The QE program will be designed to boost the zone’s low inflation, borderline deflation. Inflation, as of December, was at 0.2 percent. Well below the target of two percent set by the ECB.
The ECB will buy €70 billion a month in a private and public bond buying program. The program will last one year, ending in 2016. Their QE program will be similar to what other major banks, like the U.S. Federal Reserve and Bank of England have just ended to stimulate their economies.
Stay tuned to CupO’Forex as we bring you the latest on this story once it breaks.
