The European Central Bank has once again acted to invigorate the stagnating Eurozone, and the announces have shocked the market as although many analysts were expecting further Quantitative Easing, the ECB this time has gone further than expected and we’ve seen some big swings in exchange rates so far today.
The major announcements from the meeting include a bond-buying expansion to 80bn Euro’s a month, up from the previous figure of 60bn Euro’s, this move is to help improve money supply in the economy.
The ECB has increased its overnight deposit rate further into negative territory to -0.4% in an attempt to boost bank lending by charging lenders more to deposit cash.
The refinancing rate has been cut to zero from 0.05%, this was probably the biggest shock to markets.
After the news we’ve seen the Euro fall against most major currencies, with GBPEUR up roughly around 1% at the time of writing, and EURUSD down over 1.5%. Mario Draghi’s statement along with the usual questions and answering a bit later today should present us with a bit more information regarding the ECB’S changes in policy this afternoon.
If you are planning to use GBP to buy a foreign currency in future if may well be worth your time getting in contact with me (Joseph Wright) on email@example.com to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.