ECB meeting results

• Deposit funds rate (September), fact -0.50%, forecast -0.50%.
• ECB margin lending rate, fact 0.25%, previous value 0.25%
• Interest rate decision (September),  fact of 0.00%,  forecast 0.00%.

Following the ECB September meeting, the deposit rate was lowered by 10 b. p. to the mark of -0.50%. The remaining margin lending rates and key interest rates remained unchanged. But the ECB noted that margin lending rates and key interest rates will remain at the current level or lower until consumer inflation becomes stable near the target level of 2%. Also it was noted the resumption of the purchase of assets in the amount of 20 billion euros per month from November 1.

Fig. 1. Eurozone deposit rate chart

As a result, the euro accelerated the decline across the market, which was caused by stimulation of the eurozone economy. Major incentive measures fell on the Governing Council Asset Purchase Program (APP). This allowed the ECB to postpone lowering interest rates without denying such actions.

As a result, the EUR/USD pair fell to weekly lows and is limited by support levels: 1.0930 and 1.0900

Fig. 2. EUR/USD chart. Current price – 1.0940

Read also: “Should we expect the currency intervention from the Bank of Japan”

Hanzenko Anton

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