The European Central Bank left the key interest rate unchanged at 0.75%. It also left the other rates, including the deposit rate, unchanged at 0%. This was widely expected.
The focus now shifts to the press conference held by Mario Draghi at 13:30 GMT. ECB Preview: Will Draghi drag the euro down? So far, euro/dollar is trading at the high end of the 1.3486-1.3588 range. The pair stabilized in this range in the run up to the event. The pair is ticking very marginally higher after the release.
In the previous rate decision, Draghi surprised by saying that the decision to leave rates unchanged was unanimous. His tone was upbeat towards the financial markets and downbeat concerning the real economy. He coined a new phrase: “positive contagion” – Draghi wished to see the real economy being influenced from the better conditions in financial markets.
Earlier, the Bank of England left the interest rate unchanged at 0.50% and the QE program unchanged at 375 billion pounds, as expected as well.
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