ALL ATTENTION TO THE EURO! The meeting of the Governing Council of the European Central Bank – TODAY!
Dear traders,
This meeting of the ECB will be one of the most important for a long time. Most likely, today the European Central Bank will signal that it will curtail its financial incentive program by the end of this year. This will be one of the key actions for the abandonment of financial incentives in the period after the financial crisis.
The decision on the interest rate of the ECB will be announced at 14:45 in Kyiv. After the announcement of the decision of the ECB, traders are waiting for the press conference of ECB President Mario Draghi at 15:30.
In the week, demand for the euro is rising after the ECB chief economist Peter Praet made statements in favor of tightening monetary policy. This strengthened the forecasts that at the next meeting the European Central Bank will more fully disclose its plans to curtail its large-scale program of quantitative easing.
Previously, investors predicted that the ECB would wait until July before making such decisions. However, ECB officials decided that the political crisis in Italy is over and are ready to discuss the deadline for the completion of the redemption of government bonds.
The economy of the eurozone has been growing for the past five years, a high level of employment remains, salaries are steadily growing, and the bond repurchase program has allowed to reduce the cost of borrowed funds. All this in general makes the next step logical.
At the moment, market players consider the probability of an increase in the interest rate in July 2019 at 90%. A few weeks ago, the most likely increase was the interest rate in October 2019. (Investing.com)
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