The European Central Bank left interest rates at a record low as policy makers start to consider how to scale back the crisis-fighting measures introduced over the past two years.
The ECB’s Governing Council meeting in Frankfurt today set the benchmark lending rate at 1 percent for a 16th month, as predicted by all 51 economists in a Bloomberg News survey. The ECB will not raise its key rate until the third quarter of 2011, a separate survey showed. President Jean-Claude Trichet holds a press conference at 2:30 p.m.
The euro has rebounded 10 percent since June and stocks have jumped as the debt crisis that threatened to splinter the currency eases and the growth outlook improves. While economists say Trichet is unlikely to outline his exit plans until next month, a successful round of banking stress tests and Greece’s progress in cutting its budget deficit may prompt officials to discuss laying the groundwork for removing stimulus.
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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
Latest posts by Dean Popplewell (see all)
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