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ECB Leaves Rates Unchanged again November 2012

The European Central Bank decided not to change the interest rate: lending rate is at 0.75% and the deposit rate remains at 0%.

EUR/USD was battling with 1.2743 prior to the release. No big change was seen. Draghi will meet the press at 13:30 GMT, Stay tuned for a live blog of the event.

There were good reasons to think that Draghi would cut the rates from 0.75% to 0.50%, due to the worsening situation in Europe, and the fear of deflation.

Draghi warned about a German recession. After the rates were left unchanged, Draghi could still hint about a move in December.

Earlier, the Bank of England also left policy unchanged: no new QE and no move on the rates.

For more, see the euro dollar forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.