13:00 The ECB has released its latest monetary policy decisions from its meeting of the Governing Council today.

The European Central Bank has cut its benchmark interest rate to 0 percent, causing the euro to plummet 1.5 percent and German 2 year bonds to shoot upwards.

Andrew Sentance, a former Bank of England policymaker, tweeted:

“Monetary policy being pushed to the limits… and beyond!”

13:10 The bank also announced the decision to expand the scope of assets that it will buy through its quantative easing programme, which will now include investment-grade corporate bonds. The decision to buy government debt suggests that the ECB have upped their game after a disappointing meeting in December.

13:13 The ECB intend to raise inflation to 2 percent, which currently could take up to 15 years.

Draghi has announced the decision to cut deposit facility to -0.400 percent.

13:20 FTSE up 0.54%, CAC40 up 2.63%, IBEX up 3.29%

13:30 ECB press conference with Mario Draghi, President of the ECB, and Vítor Constâncio, Vice President – live from Frankfurt am Main, Germany

ECB conducted a “thorough review” extending into the year 2018 and aim to stimulate return of inflation to levels of or at 2 percent.

Draghi: “To ensure the continued smooth implementation of asset purchases, increased issue share limits for purchase of securities issued by organisations from 33 percent to 50 percent.”

13:40 Governing council expects key interest rates to remain at present or lower levels for an extended period of time.

Draghi: ECB will launch four new refinancing operations – offering cheap four-year loans to banks. Loans could be as cheap as the ECB’s deposit rate, which has been cut to minus 0.4% today.

“Growth dampened by volatile financial markets and the sluggish pace of implementation of structural reforms.”


“Outlook for real GDP has been revised slightly down reflecting weaker growth prospects for the global economy.”

Heightened uncertainties in the global economy and broader geo-political risks” will impact on inflation and the EU economy, continues Draghi.

Projections for European Area see inflation 1.3 percent in 2017 and 1.6 percent in 2018 – below its target of 2 percent.

Outlook for inflation has been revised down, reflecting the fall in oil prices over recent months.

Looking forward, Draghi said: “Long dynamics see path of gradual recovery observed since 2014.”

Annual growth rate of loans to households remains stable at 1.4 percent in January 2016.

13:50 Public infrastructure is vital to increase investment and job creation. Draghi recommends swift implementation of structural reforms, and says schemes should be stepped up.

“All countries should strive for a more growth-friendly composition of fiscal policies.”

– End of Mario Draghi’s statement on today’s monetary policy decisions –

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