Head of the European Central Bank Jean-Claude Trichet today held its last meeting. Before leaving the post of head of the ECB Trichet has left its key interest rate unchanged at 1.5% per annum. In anticipation of the last speech the head of the Central Bank, which is due to the crisis eurozone became a key figure in the hierarchy of the global economy, investors have played in the decline of the euro. Stop the speculative attack on the euro could only promise to provide banks with additional liquidity and long-term purchase of secured bonds to resume.
At today's meeting, the ECB decided to keep the base rate unchanged at 1.5% APR. In early April, the ECB for the first time after almost two years, during which the rate was at a record low - 1%, has increased the base rate refinance 25 pp - up to 1.25% per annum. Already in July the rate was increased to 1.5%.
Currency markets reacted to the decision of the ECB a new wave of selling of European currencies. As a result, the euro, achieved during the first half of the day at $ 1.3396 per euro, down to 16:20 for $ 1.325 per euro, which is 0.7% below the close environment. Weakened its position and the European currency on the Russian market. On the MICEX, the euro sank to 20 kopecks., To 43.14 rubles. / €. According to the analyst Nomos Bank Igor Nuzhdin, investors began selling in anticipation of the press conference of the ECB Jean-Claude Trichet, which will be announced next steps of the regulator.
"Trichet holds the fate of Europe in his hands at the moment, - said the chief economist for the European markets at Barclays Capital in London, Julian Callow .- If Europe goes into recession again, it will be big trouble. Regulators must do everything to prevent it. " Today's meeting - the last conducted by Jean-Claude Trichet, who is leaving the ECB. In this position, it will replace the head of the Central Bank of Italy Mario Draghi.
At a press conference, ECB head Jean-Claude Trichet announced that the regulator will provide banks with additional long-term liquidity, as well as resume the purchase of secured bonds. "We chose to leave rates, taking into account that they are very low and work on price stability," - said Mr Trichet. It is planned that the ECB will hold an auction of loans for a period of 12 months in October and the second for a period of 13 months in December. Funding will be provided at a fixed rate, on the basis of the satisfaction of all claims. In addition, in November, the regulator will begin repayment of secured bonds in the amount of € 40 billion, which is immediately reflected on the euro. By 17:50 the euro back to the previous day's close - $ 1,333 / € and 43.35 rubles. / €.
Along with the ECB meeting held Bank of England, who kept the base interest rate unchanged at 0.5% per annum and unexpectedly increased the amount of the asset repurchase program by 75 billion pounds - up to 275 billion pounds (about $ 440 billion). The decision to expand the buy-back program affected the Swiss franc, which sank to 17:40 to lowest level since July last year for $ 1.53 franc, which is 1.2% below the close environment.
At today's meeting, the ECB decided to keep the base rate unchanged at 1.5% APR. In early April, the ECB for the first time after almost two years, during which the rate was at a record low - 1%, has increased the base rate refinance 25 pp - up to 1.25% per annum. Already in July the rate was increased to 1.5%.
Currency markets reacted to the decision of the ECB a new wave of selling of European currencies. As a result, the euro, achieved during the first half of the day at $ 1.3396 per euro, down to 16:20 for $ 1.325 per euro, which is 0.7% below the close environment. Weakened its position and the European currency on the Russian market. On the MICEX, the euro sank to 20 kopecks., To 43.14 rubles. / €. According to the analyst Nomos Bank Igor Nuzhdin, investors began selling in anticipation of the press conference of the ECB Jean-Claude Trichet, which will be announced next steps of the regulator.
"Trichet holds the fate of Europe in his hands at the moment, - said the chief economist for the European markets at Barclays Capital in London, Julian Callow .- If Europe goes into recession again, it will be big trouble. Regulators must do everything to prevent it. " Today's meeting - the last conducted by Jean-Claude Trichet, who is leaving the ECB. In this position, it will replace the head of the Central Bank of Italy Mario Draghi.
At a press conference, ECB head Jean-Claude Trichet announced that the regulator will provide banks with additional long-term liquidity, as well as resume the purchase of secured bonds. "We chose to leave rates, taking into account that they are very low and work on price stability," - said Mr Trichet. It is planned that the ECB will hold an auction of loans for a period of 12 months in October and the second for a period of 13 months in December. Funding will be provided at a fixed rate, on the basis of the satisfaction of all claims. In addition, in November, the regulator will begin repayment of secured bonds in the amount of € 40 billion, which is immediately reflected on the euro. By 17:50 the euro back to the previous day's close - $ 1,333 / € and 43.35 rubles. / €.
Along with the ECB meeting held Bank of England, who kept the base interest rate unchanged at 0.5% per annum and unexpectedly increased the amount of the asset repurchase program by 75 billion pounds - up to 275 billion pounds (about $ 440 billion). The decision to expand the buy-back program affected the Swiss franc, which sank to 17:40 to lowest level since July last year for $ 1.53 franc, which is 1.2% below the close environment.
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