Market Overview

ECB Restarts Quantitative Easing, Cuts Deposit Rate By 10 Basis Points

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ECB Restarts Quantitative Easing, Cuts Deposit Rate By 10 Basis Points

The European Central Bank cut the interest rate on deposits by 10 basis points to 0.5% on Thursday and said it will relaunch quantitative easing.

The ECB announced that net purchases will be restarted under the Governing Council’s asset purchase program at a monthly pace of 20 billion euros ($21.9 billion) beginning Nov. 1. 

The Governing Council said it expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.

U.S. President Donald Trump commented on the ECB decision in a tweet. 

Price Action

The Vanguard FTSE Europe ETF (NYSE: VGK) was up 0.39% in premarket trading at the time of publication Thursday. Read more about eurozone ETFs here

Related Links:

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Christine Lagarde Nominated To Become Next ECB Chief

Photo by Epizentrum via Wikimedia

Posted-In: European Central BankNews Eurozone Markets Best of Benzinga

 

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