R K Posted June 5, 2014 Share Posted June 5, 2014 (edited) Statement http://www.ecb.europa.eu/press/pr/date/2014/html/pr140605.en.html PRESS RELEASE 5 June 2014 - Monetary policy decisionsAt today’s meeting the Governing Council of the ECB took the following monetary policy decisions: The interest rate on the main refinancing operations of the Eurosystem will be decreased by 10 basis points to 0.15%, starting from the operation to be settled on 11 June 2014. The interest rate on the marginal lending facility will be decreased by 35 basis points to 0.40%, with effect from 11 June 2014. The interest rate on the deposit facility will be decreased by 10 basis points to -0.10%, with effect from 11 June 2014. A separate press release to be published at 3.30 p.m. CET today will provide details on the implementation of the negative deposit facility rate. The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today. Further monetary policy measures to enhance the functioning of the monetary policy transmission mechanism will be communicated in a press release to be published at 3.30 p.m. CET today. Further measures?? Edited June 5, 2014 by R K Quote Link to comment Share on other sites More sharing options...
R K Posted June 5, 2014 Author Share Posted June 5, 2014 Link to Draghi presser at 1.30pm (UK) http://www.ecb.europa.eu/press/tvservices/webcast/html/webcast_140605.en.html Quote Link to comment Share on other sites More sharing options...
Reck B Posted June 5, 2014 Share Posted June 5, 2014 (edited) Great! now they've discovered there are more decimal places to play with, other than moving things by 0.25% I predict that the economy of the future will be 'controlled' by rate changes of a trillionth of a percent. Shit like this gets 'baked in' over time, does it not? Edited June 5, 2014 by Reck B Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted June 5, 2014 Share Posted June 5, 2014 They should make Geldof the governor. "Don't give us your fugging money!" Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 5, 2014 Share Posted June 5, 2014 A negative deposit rate. WTF are they going to do when the figures reveal there's a recession!!! Quote Link to comment Share on other sites More sharing options...
billybong Posted June 5, 2014 Share Posted June 5, 2014 (edited) Cutting the rate by 0.1% will give the economy such a boost - not. It seems to be a purely political event perhaps a signal to indicate that things are far far worse than they can openly admit. Also a response to the pressure from the profligate UK money printers that the ECB should QE. Edited June 5, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 hmmmm Voters across the continent have expressed their discontent with the EU The ECB is trying to give the impression it is in control when it very clearly isn't Not looking so good for our continental neighbours just now Quote Link to comment Share on other sites More sharing options...
zugzwang Posted June 5, 2014 Share Posted June 5, 2014 A negative deposit rate. WTF are they going to do when the figures reveal there's a recession!!! Admit that they don't know what they're doing? Quote Link to comment Share on other sites More sharing options...
Ah-so Posted June 5, 2014 Share Posted June 5, 2014 This is massive. Banks have to hold reserves and if there is a negative central bank interest rate, they will want to minimise this and this may result in them turning away deposits or offering negative interest rates. A likely result is the swapping of euros to other currencies and a weakening of the euros as well as a drop in the yield on other assets. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 5, 2014 Share Posted June 5, 2014 Admit that they don't know what they're doing? Led by a banker called Druggie, they wouldn't, would they. Quote Link to comment Share on other sites More sharing options...
R K Posted June 5, 2014 Author Share Posted June 5, 2014 Currency wars are alive & kicking. Carney's going to have to try alot harder if he wants to stay in this game. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 5, 2014 Share Posted June 5, 2014 Are this lot just jealous of our booming economy and trying to sink us? Earlier in the week they had the nerve to tell Osborne to alter Help to Buy (Fire torpedo 1) and 'deploy appropriate measures' against rising house prices (Fire torpedo 2). Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 (edited) there is a further statement to come at 1330 UK apparently... QE? Edited June 5, 2014 by JPJPJP Quote Link to comment Share on other sites More sharing options...
R K Posted June 5, 2014 Author Share Posted June 5, 2014 there is a further statement to come at 1330 UK apparently... QE? See OP - presser at 1.30. Statement on further measures/money tranmission at 2.30. My guess he'll have to explain at presser. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted June 5, 2014 Share Posted June 5, 2014 there is a further statement to come at 1330 UK apparently... It makes you nostalgic for Black Wednesday with a series of increasingly panicked statements throughout the day. Quote Link to comment Share on other sites More sharing options...
R K Posted June 5, 2014 Author Share Posted June 5, 2014 It makes you nostalgic for Black Wednesday with a series of increasingly panicked statements throughout the day. What happened to Lamont? Oh yeah, he sits in the Lords and advises Osborne. Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 See OP - presser at 1.30. Statement on further measures/money tranmission at 2.30. My guess he'll have to explain at presser. I am quite looking forward to it in a macabre sort of way Quote Link to comment Share on other sites More sharing options...
Reck B Posted June 5, 2014 Share Posted June 5, 2014 (edited) The way I see things. European banks know a major collapse is a coming - so will see having their funds on deposit at -0.1% with the ECB is a better option than lending it into a bust, debt-saturated economy. They might even pass this cost onto normal account holders through bank charges. (rather than mirroring negative interest rates, which would certainly cause people to withdraw en-masse) Edited June 5, 2014 by Reck B Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted June 5, 2014 Share Posted June 5, 2014 The Euro is hardly tanking on the news and gold isn't moving yet either. Draghi has a history of promising bold actions and the market being disappointed at what he actually delivers, so I wonder if the staggered announcements are a way for him to assess the reaction to each before actually committing to anything more. In other words, I think his back is against the wall and he's making it up as he goes along. Seems that Super Mario is not so good at guessing how the crowd will guess the rest of the crowd will react... http://www.salientpartners.com/epsilontheory/notes/A_Game_of_Sentiment.html Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 retail sales are up though... the light at the end of the tunnel? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 5, 2014 Share Posted June 5, 2014 Isn't the problem fractional reserve banking, not that they have too much on deposit? Banks are expected to lend too much in relation to their deposits. Quote Link to comment Share on other sites More sharing options...
Reck B Posted June 5, 2014 Share Posted June 5, 2014 Euro QE suspended? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 5, 2014 Share Posted June 5, 2014 the ECB has been carrying out economic analysis. One would wonder just what they have been analysing. Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 Abs purchases = QE in my book Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted June 5, 2014 Share Posted June 5, 2014 (edited) Dax up and through 10k S&P touches 1935 Edited June 5, 2014 by JPJPJP Quote Link to comment Share on other sites More sharing options...
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