ECB's Draghi talks the latest on rates and bond-buying

27 April, 2018, 00:54 | Author: Shannon Aguilar
  • European Central Bank leaves interest rate unchanged, despite slowing of EU economic growth

The ECB was approaching the coming month with "prudence, patience and persistence", said Draghi, with the bank also indicating that it was in no rush to begin increasing borrowing costs.

In the press conference Mario Draghi announced the governing council's message was for "caution tempered by an unchanged confidence that inflation will converge to our inflation target over the medium-term but that confidence is conditional on an accommodative monetary policy framework being in place".

The deposit rate, now the bank's primary interest rate tool, will remain at -0.4% while the main refinancing rate will be unchanged at 0%.

Draghi warned that rising protectionism was starting to pose a "more prominent" risk to the eurozone outlook after US President Donald Trump fanned fears of a global trade war.

With the bond-buying scheme due to expire in September, the European Central Bank will have to decide in June or July whether to extend purchases or wind them down.

If growth slows significantly, the central bank could face pressure to extend its 30 billion euros ($36 billion) in bond purchases. But recent economic data has been mixed.

Ford to Cease Production of Sedans as it Looks to Boost Profits
Despite the higher profit, Ford's adjusted pretax profit margin fell to 5.2 percent from 6.4 percent in the same quarter in 2017. The company is committed to increasing profit margins by focusing on more popular trucks and SUVs going forward.

Malaysia Releases Images of Suspects in Palestinian Engineer's Killing
The suspects are believed to have used fake identities when entering the country. My brother was only a positive person who loved his religion and knowledge".

Ian Rush says Salah can inspire Liverpool to European glory
Liverpool's Mohamed Salah has been named as the Professional Footballers' Association player of the year for the 2017-18 season. Salah also became the seventh Liverpool player to win the award in the club's history.

Business confidence in the 19-country bloc has already taken a knock, most notably in export-focused Germany.

While the trade tensions have so far mostly been limited to "rhetoric", the European Central Bank chief warned "obviously" [they] can't know what are going to be the direct effects of potential retaliation if the U.S. threats become reality.

Interest rates will be on hold until well past the horizon of net asset purchases, which likely implies a hike in September 2019 at the earliest, the economist added.

A key worry is that protectionist rhetoric from the U.S. could push down the value of the dollar, an economic anomaly as the Federal Reserve is likely to raise interest rates several times this year, a natural support for the United States currency. It is up around 1.5 percent against the US dollar so far this year and was trading at $1.2155 shortly after 1 p.m. London time.

In particular, winding back the bond-buying programme will depend on the ECB's success in driving inflation back towards its annual target of just below 2%.

Nonetheless, the euro's recent strength has had a relatively limited impact in recent weeks.

Recommended:

  • Meek Mill attends National Basketball Association  playoff game after prison release

    Meek Mill attends National Basketball Association playoff game after prison release

    Even on a night where the Sixers would win 104-91, clinching their first postseason series since 2012, Meek Mill was the star. Many of Meek Mill's supporters have argued that his case is a testament to the issues present in the criminal justice system.
    Beijing: BMW Concept iX3

    Beijing: BMW Concept iX3

    BMW - at the 2018 Beijing Motor Show - unveiled the concept of its first mass-produced electric vehicle - the BMW iX3 Concept. This technology groups the electric motor, transmission, and power electronics into a new separate electric dive component.
    Facebook Owned WhatsApp Hikes User Age Limit To 16 In Europe

    Facebook Owned WhatsApp Hikes User Age Limit To 16 In Europe

    It plans to ask under-16s to nominate a parent or guardian who can grant permission for them to share information on the app. Meanwhile Twitter announced in a blog post that it has updated its privacy policy to make the terms simpler to its users.
  • Congress President Rahul Gandhi slams BJP-RSS for destroying Supreme Court

    Congress President Rahul Gandhi slams BJP-RSS for destroying Supreme Court

    The previous governments were indulging in corruption, he alleged as he lauded the Modi government. The courts are being filled by RSS and we must protect our constitution and institutions.
    Activist group publishes database of Syria chemical attacks

    Activist group publishes database of Syria chemical attacks

    Israel and Russian Federation have maintained close contact in order to prevent any clashes between their air forces in the skies over Syria .
    Bob Dorough, 'Schoolhouse Rock!' Composer, Dies

    Bob Dorough, 'Schoolhouse Rock!' Composer, Dies

    We invite you to share condolences for Bob Dorough in our Guest Book . Dorough released his first album, Devil May Care , in 1956.
  • Wall Street struggles for footing on cost worries, rising yields

    OVERSEAS: Germany's DAX lost 0.2 percent while the French CAC 40 added 0.1 percent and Britain's FTSE 100 rose 0.4 percent. Benchmark U.S. crude oil rose 30 cents to $68.35 a barrel in electronic trading on the New York Mercantile Exchange.
    Princess Charlotte's floral smocked dress sells out after Lindo appearance

    Princess Charlotte's floral smocked dress sells out after Lindo appearance

    The boy was born at 11:01 a.m.in London on Monday to Catherine, the Duchess of Cambridge, with her husband Prince William on hand. Unlike Prince Harry and Royal-in-waiting Meghan Markle, we never see the Duke and Duchess of Cambridge cuddle up to one another.
    Venkaiah Naidu rejects 'impeachment' notice against CJI

    Venkaiah Naidu rejects 'impeachment' notice against CJI

    The Congress party said it was not surprised by the ruling by Naidu, a former minister under Prime Minister Narendra Modi. About the BJP charge that the motion was linked to Supreme Court judgement in the case relating to death of Judge B.H.
  • Cuomo appeals to Felder: Come back to Democrats

    Cuomo appeals to Felder: Come back to Democrats

    Rye's Latimer vacated the seat last fall when he won his race for Westchester County Executive against the incumbent Rob Astorino. But the governor predicts that if Felder remains with the GOP, "nothing" will happen during the remaining 25 session days.
    Arsene Wenger admits timing of Arsenal exit was out of his hands

    Arsene Wenger admits timing of Arsenal exit was out of his hands

    As he chases one final piece of silverware as Arsenal manager, it's up to Wenger to find the right balance. "It's up to us to make it the kind of game we want to have and be fearless ".
    Milind Soman ties knot with Ankita Konwar

    Milind Soman ties knot with Ankita Konwar

    While Milind looked handsome in a blue kurta , Ankita looked lovely in a pink silk saree . Some of the fans are heartbroken to see their crush finally getting married!


Popular

Trump's Fox Comments Are Already Being Used Against Michael Cohen in Court
Asked how much legal work Cohen did for him, Trump said, "As a percentage of my overall legal work, a tiny, tiny little fraction". Trump was also asked about Cohen's decision to plead the Fifth Amendment in a case brought by Daniels over the hush agreement.

Snapchat's New Spectacles Are Water-Resistant and 'Made for Summer'
Unlike the wild colors of the initial Spectacles , the new models are available in more muted colors, Onyx, Ruby and Sapphire. Now again Snapchat is trying their luck in the spectacles department by launching the V2 of the Spectacles.

Apple Releases Minor iOS 11.3.1 Update for iPhone and iPad
The American company Apple continues to release new commercials, which compares your iPhone with the Android competitors. The update also fixes a spoofing issue that could allow maliciously crafted text messages to process UI spoofing.

Trump administration plans to nominate Harry Harris as South Korea envoy
Ms Bishop said "we understand the challenges the United States has on the Korean peninsula". Harris had originally been the president's pick for ambassador to Australia, a key US ally.

Dangerous, unused, unwanted prescription drugs can be disposed of Saturday
They add, however, there are restrictions on what can be disposed of. Residents are being urged to clean out their medicine cabinets.

Man who disarmed Waffle House shooter hailed by lawmakers
Davidson County Sheriff Daron Hall told reporters on Tuesday that the suspect was under medical observation and a suicide watch. Travis Reinking, who was arrested Monday following a 34-hour manhunt, has been charged with four counts of criminal homicide.

'Very good chance' of a US-China trade deal
In a speech earlier this month, Chinese president Xi Jinping said his country would open itself wider to foreign companies. The Commerce Ministry in Beijing said last weekend that China would welcome a visit from the U.S.to discuss trade issues.

Trump defends embattled VA nominee after hearing is delayed
The six-page report was reviewed Tuesday by The Associated Press. "He is a tremendous asset to the entire White House team". Patty Murray, D-Wash., a member of the Senate committee. "And they didn't do a good job, and now we're doing it".

Google brings new Tasks app to iPhone and iPad
The feature works the same way it does on Android, giving you a few options for canned responses based on the content of the mail. Finally, Google is expanding Smart Reply , which had previously only been available in mobile apps, to the Gmail web interface .

Cheers to Record Store Day!
The day is a celebration of the brick and mortar store, and the atmosphere is festive. "It's like a cultural event". Dre, Prodigy, Nas, The Notorious B.I.G., Rob Base & DJ E-Z Rock, Cypress Hill and Cam'ron plus many more.