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

Powell downplays risks to emerging market economies from Fed policies
Tuesday, 8 May 2018 14:34 WIB

Ekonomi pasar negara berkembang harus dapat mengatur dirinya seiring ekonomi pasar negara maju bergerak menuju kebijakan moneter yang lebih ketat, kata pimpinan Federal Reserve Jerome Powell, pada hari Selasa. Muncul di panel pada konferensi yang disponsori oleh Swiss National Bank di Zurich, Powel...

Fed Leaves Rates Unchanged, Says Inflation Close to Target
Thursday, 3 May 2018 01:13 WIB

Pejabat Federal Reserve meninggalkan suku bunga tidak berubah, mengakui inflasi mendekati target tanpa menunjukkan niat untuk membelok dari jalur bertahap kenaikan suku bunga mereka. "Inflasi pada basis 12 bulan diperkirakan akan berjalan di dekat simetris 2 persen tujuan komite selama jangka menen...

Australia Holds Interest Rate as Employment Bonanza Winds Down
Tuesday, 1 May 2018 12:43 WIB

Australia mempertahankan suku bunga utamanya tidak berubah pada rekor terendah Selasa - seperti yang diharapkan - di tengah perlambatan jumlah perekrutan. Gubernur Reserve Bank Philip Lowe mempertahankan suku bunga di 1,5 persen, di mana telah bertahan sejak akhir 2016, karena bank sentral menunggu...

SNB Jordan Says 'Premature' to Tighten Monetary Conditions
Friday, 27 April 2018 15:28 WIB

Depresiasi Swiss franc adalah "melegakan" bagi ekonomi, tetapi masih terlalu dini untuk menyesuaikan kebijakan, Presiden Swiss National Bank (SNB) Thomas Jordan mengatakan. Setelah bertahun-tahun mengalami penguatan, yang SNB balas dengan intervensi pasar mata uang, franc telah turun hampir 10 pers...

BOJ Maintains Policy Rate, Keeps 10-Year Bond Yield Target
Friday, 27 April 2018 10:17 WIB

Bank of Japan mempertahankan target imbal hasil obligasi 10-tahun JGB sekitar nol persen setelah pertemuan Jumat. BOJ menjaga tingkat keseimbangan kebijakan di -0.100%. Semua ekonom yang disurvei melihat tidak ada perubahan pada pertemuan ini, menurut survei Bloomberg. Sumber: Bloomberg...

ANOTHER NEWS
Sterling tumbles after weak UK inflation
Wednesday, 23 May 2018 23:47 WIB Sterling slid on Wednesday to a new five-month low after weaker-than-expected UK inflation dented the prospect of the Bank of England (BoE) raising interest rates this year. The pound had been one of the best-performing currencies in 2018 but it...

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.