ECB Keeps Policy Unchanged as Euro Gains Risk Curbing Inflation
Thursday, 25 January 2018 20:10 WIB | FISCAL & MONETARY |Bank Sentral Eropa ECB

The European Central Bank maintained its pledge to move slowly in removing euro-area stimulus, setting the stage for President Mario Draghi to face questions on the strength of the single currency.

Policy makers reiterated that they™ll continue buying 30 billion euros ($37 billion) of assets a month until at least the end of September. They kept interest rates unchanged and repeated that they expect borrowing costs to stay at present levels until well past the end of net bond purchases.

They also repeated their pledge to step up or extend the program if needed, and stressed that additional support will come from their policy of reinvesting maturing debt. Attention now turns to Draghi™s press conference at 2:30 p.m. in Frankfurt. The euro was little changed at $1.2401 at 1:46 p.m.

The ECB™s first policy decision of 2018 comes after the euro surged to its strongest level against the dollar in more than three years. U.S. Treasury Secretary Steven Mnuchin this week endorsed a weaker greenback, noting that it bolsters the nation™s trade.

The main challenge for ECB policy makers is that the euro™s gains have the potential to weigh on inflation, which the central bank forecasts won™t reach its goal before at least the end of 2020. That raises the prospect that the Governing Council will warn volatility is a source of uncertainty that requires monitoring.

That wording was last used in September after a 14 percent gain since the start of the year -- and prompted the euro to weaken over the next two months.

Calls to move ahead with plans to unwind the stimulus ahead of the meeting have helped push the currency higher. Executive Board member Yves Merschand Governing Council members Jens Weidmann and Ardo Hansson have all said the ECB should recognize that the euro area™s strongest expansion in a decade will eventually boost inflation.

Even Executive Board member Benoit Coeure, one of the key architects of quantitative easing, said he saw a œreasonable chance the latest extension to September would be the last. An account of the Governing Council™s December meeting showed that governors agreed their policy guidance could be reviewed early in the year.

Economists surveyed by Bloomberg don™t expect policy makers to start making changes to their guidance until March, with an end-date for asset purchases announced by June.

Source : Bloomberg

RELATED NEWS

BOE Keeps Policy Unchanged in a Unanimous Decision
Thursday, 8 February 2018 19:18 WIB

Pada pertemuan pertama di tahun 2018, Komite Kebijakan Moneter Bank of England (BoE) memutuskan untuk mempertahankan suku bunga acuan di angka 0,5 % dengan suara bulat 9-0. Komite juga memutuskan dengan suara bulat untuk mempertahankan fasilitas pembelian asetnya di angka £435 miliar dan target ob...

Australia Holds Rate for Record 16th Meeting Amid Currency Gains
Tuesday, 6 February 2018 11:06 WIB

Bank sentral Australia mempertahankan suku bunga tidak berubah untuk rekor pertemuan ke-16 seiring mata uang yang kembali bangkit mengancam eksportir dan menekan inflasi lebih lanjut. Chief Reserve Bank of Australia Philip Lowe mempertahankan tingkat suku bunga tidak berubah di 1,5 persen pada hari...

Fed Leaves Rate Unchanged as Yellen Departs; Sets Up March Hike
Thursday, 1 February 2018 02:14 WIB

Para pejabat Federal Reserve, yang bertemu untuk terakhir kalinya di bawah jabatan Ketua Janet Yellen, membiarkan biaya pinjaman tidak berubah sambil menambahkan penekanan pada rencana mereka untuk kenaikan yang lebih banyak, yang mempersiapkan untuk peningkatan Maret di bawah penggantinya Jerome Po...

Draghi Sees Inflation Optimism in Recovery But Euro a Worry
Thursday, 25 January 2018 21:47 WIB

Mario Draghi menyatakan keyakinan baru bahwa pemulihan kawasan euro akan menghidupkan kembali inflasi, mendorong euro ke level tertinggi dalam lebih dari tiga tahun meskipun secara bersamaan memberikan peringatan terhadap pergerakan tajam dalam nilai tukar. Meningkatkan momentum ekonomi telah "memp...

PBOC Researcher Sees Room for Higher Interest Rates
Monday, 8 January 2018 10:32 WIB

Inflasi pabrik yang lebih cepat dan keuntungan di sektor industri pada tahun lalu telah menciptakan ruang bagi kenaikan suku bunga secara keseluruhan, kata peneliti People of Bank of China, Ji Min, menurut sebuah laporan oleh China Daily. Inflasi dan nilai tukar mata uang asing juga harus diperhitu...

POPULAR NEWS
Friday, 16 February 2018 22:36
US Stocks Open Flat Amid Investor Caution
Friday, 16 February 2018 11:36
Trump Vows to Push for School Safety
Friday, 16 February 2018 22:03
Gold heads for best weekly gain since 2016
Friday, 16 February 2018 17:15
Gold Set for Best Week Since 2016 on Dollar Slump
ANOTHER NEWS
US Stocks Open Flat Amid Investor Caution
Friday, 16 February 2018 22:36 WIB Wall Street stocks were flat in early trading Friday, threatening a five-day winning streak in a sign investors remain somewhat cautious after the volatility in equities this month. About 15 minutes into trading, the Dow Jones Industrial Average...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.