European Central Bank Cut its Deposit Rate

European Central BankEuropean Central Bank president Mario Draghi addresses a news conference at the ECB headquarters in Frankfurt, Germany, September 3, 2015. REUTERS/Ralph Orlowski

European Central Bank Cut its Deposit Rate

 

European stocks erased gains, government bonds dropped and the euro recovered from a seven-month low after the European Central Bank cut its deposit rate to minus 0.3 percent from minus 0.2 percent, a smaller decline than some analysts had forecast.

The Stoxx Europe 600 Index was 0.2 percent lower at 12:56 p.m. London time, having climbed as much as 0.9 percent earlier on Thursday. Miners led the declines as metals prices dropped. The 19-nation euro rose 0.5 percent to $1.067 and rallied 0.4 percent to 1.0858 Swiss francs. Germany’s two-year note yield jumped four basis points to minus 0.403 percent.

ECB President Mario Draghi will explain the decision in a press conference at 2:30 p.m. in Frankfurt.

“A 10 basis point cut in the depo rate is less than many had hoped for,” said Marius Daheim, a senior rates strategist at SEB AB in Frankfurt.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

Be the first to comment on "European Central Bank Cut its Deposit Rate"

Leave a comment

Your email address will not be published.


*