Daily Archives: June 5, 2014

Emily Cadman

It’s crunch time for the ECB. After more than six months of talking, the governing council has finally eased policy:

  • Deposit rates have gone negative decreasing by 10 basis points to -0.10%
  • The main refinancing rate has been cut by 10 basis points to 0.15%
  • The marginal lending facility rate has been cut by 35 basis points to 0.40%

The changes all take effect from June 11

ECB president Mario Draghi will take questions from the press at 1.30pm to explain the thinking behind the cuts

Follow all the action and market reaction here with economics reporter Emily Cadman and Lindsay Whipp in London, with Eurozone economy correspondent Claire Jones in Frankfurt.

 

Claire Jones

It’s crunch time for the European Central Bank. After more than six months of jawboning, pretty much every seasoned ECB watcher thinks the governing council is finally going to ease monetary policy on Thursday.

Disappointing growth, worryingly weak inflation, and the rise of anti-establishment parties in the European Parliamentary elections have only added to the sense that rate-setters must do something to stave off the threat of deflation and help stimulate lending in the real economy. What can we expect from the ECB and how will it work?