The headquarters of the European Central Bank (ECB) are pictured during protest training organised by "NoG20 Rhein-Main" in Frankfurt

The European Central Bank has left interest rates unchanged in July as expected. The euro has picked up from its daily lows after Mr Draghi stuck to the script that the recovery still has plenty of way to go. The key message was that the eurozone still needs a “substantial” amount of stimulus to keep price growth at its current levels.

Key points

  • ECB main rate remains at 0.00%; deposit facility at -0.4%
  • No change to QE bond buying programme which runs till end of 2017
  • Euro enjoys a mild rally on Draghi’s comments

 

Germany European Central Bank

The European Central Bank has once again left interest rates and its quantitative easing programme unchanged following its governing council meeting.

Key points

  • ECB main rate held at 0.00%, deposit facility at -0.40%
  • QE bond buying programme runs till end of 2017 at reduced rate of €60 billion per month
  • Risks are still ’tilted to the downside’ says Draghi
  • Admits differences of opinion within council over strength of economic recovery
  • Draghi has a dig at Germany’s finance minister Schäuble over latter’s criticism of ECB

 

APTOPIX Germany European Central Bank

The European Central Bank has left interest rates and its quantitative easing programme unchanged at its governing council meeting on Thursday. The decision came against a backdrop of inflation reaching the bank’s goal of just under 2 per cent for the first time since early 2013.

Mario Draghi, ECB president, who was under pressure from the council’s hawks, stepped back from the prospect of more rate cuts.

Key points

  • ECB main rate remains at 0.00%, deposit facility at -0.40%
  • QE bond buying programme continues till at least end of 2017
  • Monthly QE due to drop from €80bn to €60bn from April as previously announced
  • ECB keeps long-term inflation forecasts unchanged
  • Draghi says “no signs yet of a convincing upward trend in underlying inflation”
  • Draghi takes more hawkish tone on monetary policy

 

European Central Bank President Mario Draghi Announces Interest Rate Decision

The European Central Bank’s governing council has kept interest rates on hold and once again reaffirmed plans to maintain its quantitative easing programme at €80 billion to March 2017 or beyond if needed.

President Mario Draghi SAYS that the next meeting on 8 December “will define the coming months” as he warns the eurozone is subject to “downside risks”. He says there has been no discussion about extending QE beyond next March but that “an abrupt end” to quantitative easing is “unlikely”. He says the governing council had discussed “various options in case we are confronted with a shortage of purchasable bonds in some jurisdictions”

Key points

  • Interest rates are kept on hold in October

  • The ECB’s asset purchase target is unchanged at €80bn per month

  • Draghi signals next meeting in December will be key

  • Draghi says no discussion about extending QE beyond next March

By Mehreen Khan and Gavin Jackson

 

Turkish President Tayyip Erdogan delivers a speech to his supporters in Istanbul

Live coverage of the aftermath of an attempted military coup in Turkey, where 3000 members of the military and security forces have been arrested and the judiciary has been purged.

Key developments

  • Erdogan demands “head” of suspected coup plotter Gulen from US; White House says it has not received extradition request
  • Gulen tells FT coup may have been orchestrated by Erdogan
  • PM hails Turkey now back in “complete” control of government
  • Nearly 3000 members of the military arrested; 2750 judges purged, senior judges arrested
  • Plotters who fled to Greece will be returned to Turkey – foreign minister
  • Total death count hits 265, with 161 civilians killed and 1440 wounded
  •  

    Europe’s central bankers are gathering in Vienna to deliver their latest monetary policy decisions and unveil the ECB’s new set of quarterly economic forecasts. Last month, ECB president Mario Draghi used the post-meeting press conference for some verbal sparring with some of his fiercest German critics.

    Key things to watch

    • Respite for Greece – will the ECB reward Greece by resuming lending operations to its banks?

    • Rosier economic forecasts – analysts expect higher inflation forecasts on the back of the rising oil.

    • A more hawkish Mario Draghi? Investors will be focused on the president’s press conference tone.