Global markets focused on ECB interest rate decision

Global markets focused on the European Central Bank (ECB) interest rate decision today. Analysts expect Draghi to cut interest rates and further monetary easing.

Global markets focused on the European Central Bank interest rate decision, which is expected to be announced today at 14.45.

The rise in oil prices after the stock data announced in the US yesterday brought buying to energy stocks, while the New York stock exchange ended the day with an increase. Yesterday, the Dow Jones index gained 0.21 percent, the S&P 500 index 0.51 percent and the Nasdaq index 0.55 percent. Unemployment claims will be announced in the US today.

On the European side, markets today focused on the ECB’s interest rate decision. Analysts state that expectations for new measures to be taken at the ECB meeting have increased. Yesterday, the DAX 30 index in Germany rose 0.31 percent, the FTSE 100 index in the UK rose 0.34 percent and the CAC 40 index in France rose 0.49 percent.

Draghi’s interest rate and monetary easing move may come

The majority of analysts expect a move or moves from ECB President Draghi. The biggest problem in front of Draghi is the failure to meet the 2 percent inflation target. Annual inflation in the 19-member Eurozone is at minus 0.2 percent. Economists state that the ECB could lower the deposit rate, which is currently minus 0.3 percent, by 10 points to minus 0.4 percent or even minus 0.5 percent. Within the scope of monetary easing, the ECB is buying 60 billion euros of bonds per month. Oxford Economics Analyst Ben May predicted that Draghi could increase the amount of monthly bond purchases to 80 billion euros.

Weidman against quantitative easing

On the other hand, Jens Weidmann, President of the Bundesbank, Germany’s central bank, and member of the ECB Board of Governors, has warned the bank several times against the ECB’s further monetary easing plan.

On the Asian side, before the ECB meeting, the Nikkei 225 index in Japan closed at 16,852.35 points with a gain of 1.26 percent, while the Shanghai composite index in China is down 0.73 percent. Inflation in China increased by 2.3 percent in February compared to the same period last year, reaching its highest level since July 2014.

Source: www.dunya.com

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