Reuters - The European Central Bank is expected to keep interest rates at a record-low 1.0 percent on Thursday and its head Jean-Claude Trichet will probably caution against high hopes of a speedy economic recovery.
VENICE, Italy (Reuters) - The European Central Bank is expected to keep interest rates at a record-low 1.0 percent on Thursday and its head Jean-Claude Trichet will probably caution against high hopes of a speedy economic recovery.
FRANKFURT (Reuters) - The European Central Bank is expected to keep its main interest rate at a record low 0.5 percent on Thursday but tweaks to its economic forecasts may give investors a steer on the future direction of policy.
The European Central Bank’s vow last week to keep record-low interest rates “at present or lower levels for an extended period” is a big philosophical shift for a bank that used to insist it would not tie its hands.
On the face of it an unprecedented and bold move, such ‘forward guidance’ is really just formal recognition of what markets expected anyway, and the bank’s realistic policy options are narrowly confined.
Oil fell by more than US$2 a barrel on Thursday to its lowest since June 2012, with benchmark Brent dropping under US$92 a barrel, as price cuts from top producer Saudi Arabia added to supply glut worries and weak global economic data.
Oil declined alongside European stocks as the European Central Bank left interest rates unchanged on Thursday, as expected. Investors were waiting to see the extent of an asset purchase plan, which bank chief Mario Draghi is due to discuss at a news conference due at 1230 GMT, which could inject confidence into the euro zone economy.
BRUSSELS — Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank.
The eurozone is facing a difficult road out of recession and has seen a souring of the mood among companies and consumers since March, after an optimistic start to the year was disrupted by turmoil in Cyprus and Italy.