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ECB holds rates at 1%


Wakeupcall

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Jan 7, 2009
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The European Central Bank kept its main refinancing rate unchanged at a record low of 1 per cent today, as expected.

Markets are now turning their attention to President Jean-Claude Trichet's news conference later today when he will explain the decision and present the ECB's updated staff projections for GDP and inflation.

The ECB also kept its overnight deposit rate, which acts as a floor for money markets, at 0.25 per cent and left its marginal lending rate at 1.75 per cent.
All 80 economists in a Reuters poll expected the ECB to leave rates on hold.
The ECB has lowered its rates from 4.25 per cent since October as the financial crisis wreaked havoc in the euro zone economy and inflation risks have subsided.

Since the ECB's August meeting, figures have shown Germany and France came out of recession in the second quarter and upbeat survey data have fanned hopes that the euro zone economy may return to growth in the current quarter.
From RTE news, I don't have the link.

I wonder how long they will keep it at this level?
 


HanleyS

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Jan 11, 2007
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As soon as recovery starts in EU we're screwed because our cost of unds will go up while our economy is intensive care for the next decade or more. People will save their cash rather than spend it.
 

Wakeupcall

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As soon as recovery starts in EU we're screwed because our cost of unds will go up while our economy is intensive care for the next decade or more. People will save their cash rather than spend it.
Ah, the cascading spiral...
 

sickpuppy

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Oct 24, 2007
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i read an article the other day inthe indo i thik that recommended that if your on a tracker you should keep it but everyone else should fix there mortgage before it goes up in around jan. Seemed like good advice.
 

Draftman

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Sep 2, 2009
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I guess a lot depends of the Autum figures.

As we head into winter productivity will drop.
 

wysiwyg

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Jun 29, 2008
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i read an article the other day inthe indo i thik that recommended that if your on a tracker you should keep it but everyone else should fix there mortgage before it goes up in around jan. Seemed like good advice.
Yeah.. the trackers are killing the banks that gave them out. I was refused a top up earlier in the year on my mortgage, but was told they would give me a brand new mortgage of the same value of my current one plus the top up, because they wanted to get me off the tracker and onto a variable...

I laughed in their faces
 

hammer

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Jul 6, 2009
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Very strong possibility that ECB will cut rates by .0025% this week.

That should stimulate the economy by €250m approx.
 

Knapaghbeg

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Apr 30, 2012
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2,158
Very strong possibility that ECB will cut rates by .0025% this week.

That should stimulate the economy by €250m approx.


If they create more money for bail out money it will drive Euro exchange rates down.

Gunther will not be happy.
 

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