European Central Bank (ECB) held on Thursday (8 nov) monetary policy rate at record low of 0.75%, in line with analysts' expectations and the Bank of England took a similar decision, maintaining minimum, 0.5% of key rate.
ECB lowered the key rate in early July by 0.25 percentage points, from 1% to 0.75%, and reduced the deposit rate to zero, both indicators reaching historic lows.
The Bank of England also held Thursday monetary policy rate but also the value of assets acquisition program to 375 billion pounds.
Decisions of the two central banks have been anticipated by analysts, Mediafax.
ECB expected to work a program of bond purchases as soon as Spain will require external financial assistance, according to CNBC. The bank announced in October that it is prepared to buy bonds of countries with financing problems, such as Spain and Italy, after they ask for help eurozone emergency fund.
So far no country called activation program, but the ECB announcement was enough to calm markets.
The unlimited purchases of bonds of troubled eurozone countries, the ECB announced in September, is conditioned by accessing the eurozone emergency fund and meeting strict conditions, including austerity measures and reforms.
Niciun comentariu:
Trimiteți un comentariu