The European Central Bank kept its monetary policy and the current zero interest rates at its meeting on Thursday, the third of February, as was expected.
In line with the gradual reduction in asset purchases decided last December, the bank decided that net monthly purchases would reach 40 billion euros in the second quarter and 30 billion euros in the third quarter, and starting in October, the bank will maintain purchases at a monthly pace of 20 billion. The bank announced that the emergency asset purchase program due to Corona will end next March.
In the bank’s press conference, the bank’s president, Christine Lagarde, did not repeat, in general, that the bank will not raise interest rates during the current year, and was replaced by the phrase that high inflation will continue for a longer period than our expectations.
The euro rose with these statements by the President of the Bank, because the markets will start pricing that there is a rise in interest during the current year, and she does not believe that the European Central will continue until the end of the year at the current levels of interest, so that the markets consider it a tough rhetoric to support the rises of the euro by more than 50 points, and it is now trading at 1.1350 levels against the US dollar .
05/11/2024
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