mishtalk.com / Mike “Mish” Shedlock / September 8, 2016
In today’s monetary policy meeting, the ECB Postponed Further Debate on Extending QE.
ECB president Mario Draghi claims economic data do not justify a move to prolong bond buying, the risk of deflation is low, and the existing monetary policy is “fully effective”.
Mario Draghi said the European Central Bank did not even discuss extending its €80bn a month asset purchase programme after concluding that a slight downgrade to its economic forecasts was “not so substantial to warrant a decision to act”.
The ECB kept interest rates on hold and reiterated it would continue its €80bn a month asset purchasing programme until “at least” next March, as it sought to balance lacklustre economic growth against the drawbacks of further monetary policy loosening.
The ECB’s governing council, meeting on Thursday in Frankfurt, left its benchmark main refinancing rate at zero. The deposit rate remains at minus 0.4 per cent.
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