he European Central Bank (ECB) on Thursday confirmed monthly purchases of $80 billion in government paper, known as the quantitative easing (QE) programme while interest rates remained flat or come lower for a prolonged period with the principal rate at 0.00%, the bank deposit rate at -0.40% and refinancing rates at 0.25%.
The common European currency traded below the 1.1050 level against the Greenback on Wednesday, as it had found resistance in the second weekly support level at 1.1043. Previously, as the currency exchange rate slowly moved through the first weekly and monthly support at 1.1121 and 1.1133, it plummeted down to the 1.1043, as soon as the before mentioned support levels were passed. It is most likely that the currency pair will move lower to mark new low levels, as it nears the Brexit low level.
La monnaie britannique a atteint son niveau le plus bas en trente et un ans face au dollar et en sept ans face à l’euro.
"Pure fantasy," in this way Michel Best, Bundesbank spokesman denied the rumor that European Central Bank (ECB) might be considering a taper after the bond buying program gets concluded in March 2017, which would be earlier than expected.
The ECB ensures, in the monthly bulletin, that "Domestic demand remains supported by the pass-through of the monetary policy measures to the real economy". Although it provides for economic growth for next year, it will take place at a gradual pace. "Moderate global growth continued in the first half of 2016. Looking ahead, global growth is expected to recover gradually. Low interest rates, improving labour markets and growing confidence support the outlook for advanced economies, although the uncertainty generated by the referendum in the United Kingdom on EU membership will weigh on demand in that country.
he EU countries should share sovereignty: it is the only way for men and women to make their voices heard in Europe in a global context; this is the key concept of the ECB Governor Mario Draghi, in a speech in Trento, where he received the Alcide De Gasperi prize, and he remember the need for the Old Continent will continue on the road to a stronger Union.
"National sovereignty – said Draghi – remains in many respects the key element of the government of each country. But for the challenges that transcend national boundaries the only way to preserve the sovereignty, is to make their voices heard in a global context, it is for us Europeans to share sovereignty within the European Union, which has functioned as a multiplier of our national strength ".
The ECB’s board has confirmed the interest rates at 0%. Also unchanged rates on the marginal lending facility and the deposit facility, respectively, still 0.25% and -0.40%.
The plan of purchases "Quantitative easing" has been extended until March 2017 "and beyond if necessary." The institute claimed to maintain asset purchases of €80 billion Euro per month.
he European Central Bank (ECB) last week bought € 11.14 billion worth of government bonds in the week to Sept 2 as part of the Quantitative Easing program, it took the total it owns to 1 trillion euros. Including corporate, covered and asset-backed bonds, last week’s ECB purchases came in at 13.75 billion euro.This was announced by the ECB itself.
The ECB’s decision-making body will meet again on Thursday and Mario Draghi might announce the extension of the duration of QE, which officially should end in March 2017, already extended by six months.
