News

Looking ahead to the ECB decision

24/01/2019

The European Central Bank (ECB) is scheduled to announce its monetary policy decision today at 12:45 GMT and will be followed by the usual post-meeting press conference at 1330. The Central Bank is widely expected to maintain status quo and leave its forward guidance intact that rates will remain at their current levels until after this summer. Usually, if the ECB is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, (bullish), for the EUR. Likewise, if the ECB has a dove-ish view on the European economy and maintains or reduces the interest rate it is seen as negative, (bearish).  With lower growth ahead, the chances of a rate rise in 2019 have all but disappeared already. Brexit will undoubtedly add the pressure on because if the UK leaves without a deal, as the current legal obligations dictate, the astonishing £39bn promised to the EU by the UK Government in return for what very much looks like a big bag of Nothing At All will come off the table. To us, Eurozone growth is likely to be negatively impacted by all of the above.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more