Thursday, August 2, 2012

ECB Holds Rates Steady

Following a meeting of tha European Central Bank monetary policy committee, the ECB has announced it is holding its main interest rate at  0.75 percent.

The ECB also left the interest rate on its deposit facility at 0.0 percent—a low it went to for the first time last month to encourage banks to lend overnight to other banks, where they receive a higher rate, currently about 0.1 percent.

The ECB held its marginal lending facility—or emergency borrowing rate—at 1.50 percent.

Despite the lack of movement on the interest rate front, at a press conference later today, ECB president Mario Draghi is expected to announce a bond buying program to support eurozone sovereign debt.

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