Advertisement

HindustanTimes Sat,27 Dec 2014

ECB holds rate steady as expected

Reuters  Frankfurt, July 04, 2013
First Published: 23:16 IST(4/7/2013) | Last Updated: 02:45 IST(5/7/2013)

The European Central Bank will keep interest rates at record lows for an extended period and could yet cut them further, the bank’s chief, Mario Draghi, said on Thursday.

Advertisement

Less than two hours hour after the Bank of England gave a steer about future interest rate moves at Mark Carney’s debut policy meeting as governor, the ECB president adopted the same tactic.

“The Governing Council expects the key ECB rates to remain at present or lower levels for an extended period of time,” Draghi told a news conference after the ECB left interest rates at 0.5%, emphasising that this was the first time that the ECB had done so.

http://www.hindustantimes.com/Images/Popup/2013/7/05-07-biz7.jpg

He added that the council had discussed cutting rates but decided against and said the bank could also consider cutting the deposit rate on bank deposits at the ECB - already at zero - in an attempt to foster more lending.

The pound fell to a one-month low against the dollar and British government bond yields fell sharply after the BoE moved to push back expectations of when it might eventually raise rates.


Advertisement
more from Business

Jet Airways offers discounted fares in flash sale

Jet Airways, India’s second largest airline by the number of travellers flown, on Friday launched a flash sale of tickets for travel next year, the second such sale in less than a week.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved