Amid Cyprus Weighing on Confidence, ECB Maintains Key Rate at 0.75%
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The European Central Bank (ECB) is maintaining its key benchmark interest rate at 0.75 percent, meeting economist expectations. The rate has been at 0.75 percent since last July, despite recent data indicating continued consolidation and inflation in the bloc.
The WSJ notes commentary from BNP Paribas Thursday morning: "Key areas of interest in the press conference include whether a rate cut was discussed at today's meeting, whether there is any acknowledgement of the deterioration in the sentiment surveys recently and, of course, recent developments in Cyprus.
"We can expect a deluge of questions on the way eurozone policymakers have handled the situation in Cyprus. The answers are likely to reiterate that Cyprus is, for various reasons, a 'unique' case."
Many expected a cut by the Bank given what recent activity surrounding Cyprus has done to confidence in the region.
The euro edged higher versus the U.S. dollar following the announcement. Both are stronger versus the Japanese yen following bond buying plans laid out by the Bank of Japan earlier.
ECB president Mario Draghi will be holding a conference at 8:30am EDT this morning.
U.S. stocks are indicated for a higher open.
The WSJ notes commentary from BNP Paribas Thursday morning: "Key areas of interest in the press conference include whether a rate cut was discussed at today's meeting, whether there is any acknowledgement of the deterioration in the sentiment surveys recently and, of course, recent developments in Cyprus.
"We can expect a deluge of questions on the way eurozone policymakers have handled the situation in Cyprus. The answers are likely to reiterate that Cyprus is, for various reasons, a 'unique' case."
Many expected a cut by the Bank given what recent activity surrounding Cyprus has done to confidence in the region.
The euro edged higher versus the U.S. dollar following the announcement. Both are stronger versus the Japanese yen following bond buying plans laid out by the Bank of Japan earlier.
ECB president Mario Draghi will be holding a conference at 8:30am EDT this morning.
U.S. stocks are indicated for a higher open.
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