Euro jumps as European Central Bank hints at the end of quantitative easing

Euro jumps as European Central Bank hints at the end of quantitative easing

That prompted the euro to give up the gains it posted after the ECB's post-meeting statement, while the lack of any signals of broader changes to the policy stance also pushed bond yields in Germany and France off two-week highs.

Under its landmark quantitative easing programme, the European Central Bank has promised to buy €30 billion of bonds a month until at least September.

The Governing Council kept interest rates unchanged, as expected: the benchmark main refinancing rate at zero and the deposit rate at minus 0.40 per cent.

European Central Bank president Mario Draghi raised concerns about global relations in his press conference following the decision.

President Donald Trump said Thursday he was sticking to his plans for 25 percent tariffs on steel imports and 10 percent on aluminum imports but would have flexibility to change those for specific countries.

Along with historic low interest rates, the "quantitative easing" bond-buying scheme is created to stoke economic growth by pumping cash through the financial system, helping boost inflation to the ECB's target of just below 2.0 percent - seen as most favorable for long-term growth.

While ECB inflation projections have consumer prices hovering around the 1.5% inflation rate by the end of 2018 and rising gradually over the medium term, Draghi told reporters that underlying inflation measures will remain subdued - so "victory can not be declared yet".

A majority of economists in a Reuters poll taken last week said the peak of growth momentum in the euro zone was now in the rear-view mirror.

'The Bachelor': Arie & Lauren Reveal They've Considered Eloping After Dramatic Engagement
In a real life situation that nearly echoed in this week's finale , Roberson wrote, "He'd often see both of us on the same day". Burnham looked chic in a burgundy dress and nude sandals, which she topped with a long dark coat.

Traders were waiting to see if the rate setters would remove that particular bit, as it could indicate the end of QE is moving closer. "The risk of deflation is clearly behind us and the only question is how to moderate and implement this exit", analyst Carsten Brzeski of ING Diba bank said. He is a dove and it's clear he still wears the pants on the Governing Council'.

Last week the S&P 500 fell 1.3% on fears of a global trade war as Trump announced the United States was adopting tariffs of 25% on steel and 10% on aluminium.

Markets have been anxiously awaiting the ECB's next move after an equities slump, rumblings of a possible trade war between Europe and the United States, and an Italian election Sunday that swept euroskeptic populist parties to record results.

"This outlook for growth confirms our confidence that inflation will converge towards our inflation aim.over the medium term", Draghi said.

In turn this is likely to drive down market risk appetite which may weigh on the Australian Dollar.

"However, with the unemployment rate lower than it was and growth strong, the economy is clearly in less need of stimulus".

That makes it less likely they will heed Draghi's longstanding call to reform and cut debts and deficits while the sun shines. The ECB Chief also noted that the immediate spillover of U.S. import tariffs on foreign steel and aluminum are unlikely to be that big.

Related Articles

  • United States  offers $5M reward for Pakistan Taliban leader

    United States offers $5M reward for Pakistan Taliban leader

    Mujahid claimed the Taliban had inflicted a far higher number of casualties, but the insurgents often exaggerate their claims. Ten local policemen were killed and nine were wounded in the ambush, provincial police spokesperson Khali Aseir said.
    Meghan Markle Hugged A 10-Year-Old Aspiring Actress

    Meghan Markle Hugged A 10-Year-Old Aspiring Actress

    Meghan Markle has become a member of the Church of England after she was baptized and confirmed in a secret ceremony at St. And she channelled the spirit of Diana by embracing young schoolgirls on International Women's Day .
    Nintendo Switch To Get Mario Tennis Aces This June

    Nintendo Switch To Get Mario Tennis Aces This June

    Another ability is Zone Speed, which works like bullet time, allowing you to get to balls you wouldn't normally be able to reach. You can either play with the controllers in horizontal modes or with motion controls that mimic real life tennis swings.
  • House Speaker Ryan criticizes Trump tariff plan

    House Speaker Ryan criticizes Trump tariff plan

    Ryan told Home Depot Inc . employees how they and their company will be helped by the tax cuts passed past year . But the issue of tariffs has sparked the Wisconsin Republican's strongest criticism of the president's policies.
    Kushner meets with Mexican officials to fix  damaged ties with US

    Kushner meets with Mexican officials to fix damaged ties with US

    It was the second time Pena Nieto had called off a Washington visit because of disagreements with Trump. Mexican officials declined to comment on whether Trump and Pena Nieto will hold court in the future.
    Harrison Ford Gave An Emotional Speech In Memory Of Carrie Fisher

    Harrison Ford Gave An Emotional Speech In Memory Of Carrie Fisher

    Hamill most-famously played Luke Skywalker and also voiced the Joker in the animated series of Batman back in the 1990s. Hamill then let out the creepy Joker laugh. "He changed my life forever in a way that still reverberates today".
  • Malfunction Leads to Loss of Frozen Eggs, Embryos

    Malfunction Leads to Loss of Frozen Eggs, Embryos

    All of the eggs and embryos have been moved to a working tank, with the hospital asserting that it won't destroy any of them. The failure caused the temperature to rise, ultimately making the eggs and embryos at the facility lose their viability.
    Security Issue At Brisbane Airport Causing Extensive Delays

    Security Issue At Brisbane Airport Causing Extensive Delays

    Sydney airport, Australia's busiest air hub, handled 43.3 million passengers in 2017, up 3.6 percent year-on-year. Virgin Australia said that "due to a technical issue" passengers were being processed at reduced capacity.
    The Pyeongchange Paralympics are up and running

    The Pyeongchange Paralympics are up and running

    The athletes are extraordinary, the competition fierce-as anyone who has ever witnessed the Paralympics will attest. It will be the first meeting of its kind for more than a decade and the first since Kim took power in North Korea.
  • Three killed in Maharashtra factory blast

    Three killed in Maharashtra factory blast

    They were later identified as Pintu Gautam, Janu Agaria, and Aloknath Agaria, all aged 30 and residents of Shiv Nagar in Boisar . Eyewitnesses said the explosion "sounded like a huge bomb" and it happened when many were preparing to retire for the night.
    Syrian government splits rebel-held Eastern Ghouta

    Syrian government splits rebel-held Eastern Ghouta

    It was the second convoy in one week, after deliveries on Monday were interrupted by heavy bombardment. HTS is the main force in Idlib, in Syria's northwest and the last province outside government control.
    North Carolina city releases documents beating

    North Carolina city releases documents beating

    Rush is shown in the footage being put in the back of a police vehicle and paramedics checking his bloodied face and head. The pedestrian said he couldn't breathe as Hickman choked him, repeatedly hit him over the head and handcuffed him.