European Central Bank keeps stimulus in place

Though economy surprises ECB to stick with stimulus program

Though economy surprises ECB to stick with stimulus program

However, the European Central Bank did present a less dovish stance on interest rates, as it revealed that it expects policy rates to remain "at present levels" for an extended period of time, compared to its previous wording of "at present or lower levels".

Among other factors making the ECB cautious are big debts overhanging governments and companies, the piles of unpaid loans weighing on banks in countries like Italy and Portugal, and political uncertainty ahead of elections in Germany and Italy.

"We need to be persistent, we need to accompany the recovery with our monetary policy".

Fed funds futures implied traders saw about a one-in-four chance of a rate increase to 1.25-1.50 percent at the Fed's September policy meeting and slightly above a 50 percent of a rate of such a move at its December meeting FFU7 FFZ&, CME's FedWatch showed.

"Even though it was well telegraphed over the last 24 hours, the future expectations on inflation came in a bit lower than the market had been anticipating", said Dean Popplewell, chief currency strategist at Oanda in Toronto.

The bond purchases, made with newly printed money, are aimed at increasing inflation from its current annual 1.4 percent toward the central bank's goal of just under 2 percent. The trimming of its 2017-19 CPI forecast was largely due to lower food and energy prices, however it is likely to support the doves within the European Central Bank council. That means the Eurozone is growing at double the rate of the United States economy, now estimated at 1,2%. This term makes it clear that the Governing Council is free to change interest rates as it sees fit.

No deal yet between UK Conservatives and DUP to back PM May
Norway is in the single market, in return for accepting free immigration from the EU, EU courts and budget payments. She also said that the talks with May's party had covered corporation tax and same sex marriage.

With Thursday's decision, the ECB's deposit rate, its key policy tool, remains at -0.4 per cent.

This breaking news story is being updated as more information emerges - please refresh the page for the most recent version. The central bank has removed any reference to a possible lowering of the interest rate. That rate is closer to 15 per cent. That compared with earlier estimates of 0.5 and 1.7 percent respectively.

The ECB did as expected and kept its base interest rate at 0 per cent and Mr Draghi ruled out moving the base rate to negative territory.

However, he said that there was no discussion on tapering or normalizing interest rates in the Governing Council as it was not yet time to think of such steps given the subdued inflation in the euro area.

The European Central Bank President Mario Draghi on Thursday unveiled the bank's latest set of macroeconomic projections that revealed an upgrade to the region's growth outlook and a lowering of the inflation projections. In the previous quarter, GDP had risen by a revised 0.5%, while the preliminary print indicated an expansion of 0.5%.

The ECB tweaked the language of this statement, which in April read "present or lower levels" for interest rates.

Recommended News

  • Daniel Day-Lewis announces retirement from acting

    Daniel Day-Lewis announces retirement from acting

    In 2002, he returned to acting as Bill the Butcher in Martin Scorsese's " Gangs of NY ", alongside Leonardo DiCaprio. Others among his most memorable films were " The Last of the Mohicans ", " Nine ", "The Cricible" and " The Boxer ".
    Trump acknowledges for first time he's under investigation

    Trump acknowledges for first time he's under investigation

    First, at present, I do not believe that sufficient evidence exists to credibly claim that the president has obstructed justice. Rosenstein could eventually be questioned by Mueller about his memo on Comey and what motivated Trump to ask him to write it.

    UK Parliament opening date set, suggesting Tory deal reached

    May is holding talks Thursday with other Northern Ireland political parties amid warnings the expected DUP deal will undermine the peace process.
  • 'Scalise took a bullet for all of us'

    'Scalise took a bullet for all of us'

    The assailant had nursed grievances against President Donald Trump and the GOP - and was shot by police and later died. They also signed oversized cards sending well wishes to those who were injured in the shooting, including Rep.
    White House denies Trump wants Mueller out, but heat's on

    White House denies Trump wants Mueller out, but heat's on

    Shortly after Trump fired Comey, a Justice Department official tapped Mueller to take up the investigation as a special counsel. Despite Spicer distancing the White House from Ruddy's allegations, Trump does have the power to sack Mueller.

    Afghan soldier wounds 7 American soldiers

    On Saturday, Mujahid praised the camp Shaheen attack in a statement sent to the media, but did not claim Taliban responsibility. It comes exactly one week after an Afghan soldier allegedly opened fire on USA troops, killing three and wounding one.
  • London fire could delay deal between UK PM May's Conservatives and DUP

    London fire could delay deal between UK PM May's Conservatives and DUP

    That's why we're ready to start very quickly. "That if Britain changes its mind it would find an open door", Guy Verhofstadt told the chamber.
    Paul George to the Lakers? All the possible ways it can happen

    Paul George to the Lakers? All the possible ways it can happen

    Growing up in southern California, the Lakers are the favorite to lure him to their team in next offseason. The Lakers could take the guess work out of this process by orchestrating a trade for George now.

    May's UK election gamble backfires as Tories lose majority

    Britain voted to leave the European Union in a referendum previous year in what became popularly known as Brexit. May is under pressure after the Conservatives lost their parliamentary majority in Thursday's election .
  • Shares of Snap sink to initial public offering price

    Shares of Snap sink to initial public offering price

    Raymond James Financial, Inc. reaffirmed a "market perform" rating on shares of Snap in a research note on Friday, May 12th. JPMorgan Chase & Co. purchased a new position in shares of Snap during the first quarter worth approximately $252,388,000.
    Democrats to halt Senate business in health care protest

    Democrats to halt Senate business in health care protest

    Fortunately, he believes the time issue can be solved because if they add more legislation days, they can "make more time". Senate Republican Marco Rubio said he hoped there would be "plenty of time for debate and analysis" on such a crucial bill.
    Wonder Woman Relinquished Her Top Box Office Spot To Cars 3

    Wonder Woman Relinquished Her Top Box Office Spot To Cars 3

    The Tupac Shakur biopic All Eyez on Me landed at No. 3 at the North American box office over the weekend. The news is rough for Sony's raunchy female comedy, " Rough Night ".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.