Thursday, January 25, 2018

Here comes the ECB ...







Mario DraghiThomas Lohnes/Getty
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  • The European Central Bank will release the
    monetary policy decisions from the January meeting of its
    Governing Council at 12.45 p.m. GMT.



  • It is highly unlikely that any policy changes will
    occur.



  •  This post will be updated once the ECB's decision
    is announced.




The European Central Bank will soon release the monetary policy
decisions from the January meeting of its Governing Council, the
first of 2018.


At 12.45 p.m. GMT (1.45 p.m. CET; 7.45 a.m. ET), the central bank
for the euro area will announce whether it changed either
interest rates or its asset buying programme in any way.


It is highly unlikely that any policy changes will occur, with
any movement likely to give a major shock to financial markets.


The bank decided in October to reduce its asset purchases
to €30 billion euros a month from €60 billion and to extend them
at least until September, or longer if necessary. 


It is widely expected to announce a further lowering of its
monthly purchases at some point in 2018, although when that will
be remains unclear.






While policy changes are unlikely, investors will be keenly
watching ECB President Mario Draghi when he speaks to the media
at 1.30 p.m. GMT. It is thought that Draghi may strike a dovish
tone, despite the eurozone's rampant recent growth, in an effort
to subdue the rally seen in the euro in recent months.


The single currency hit a fresh three-year high on
Thursday, and there are worries that continuing
appreciation could dampen inflation and endanger the work
done by years of unprecedented stimulus.


This post will be updated once the ECB's decision is
announced.








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