As expected, the European Central Bank kept interest rates unchanged. The interest rate on the main refinancing operations remains at 0.00%, the interest rate on the marginal lending facility at 0.25% and the deposit rate at -0.50%.
The ECB also said it was expected to slow down the PEPP securities purchase program in connection with the interest rate pandemic. In the past, the ECB has purchased approximately € 80 billion a month in securities under the program. According to news agency Reuters, analysts expect the pace to slow to about 60 billion euros a month now.
The euro rose slightly against the dollar after the ECB’s decision. One euro at 15:30 on Thursday received $ 1.1832, £ 0.8555 or 130.00 yen.
The dollar was depreciating against all major currencies, but still close to its two-week high. The dollar gained 109.87 yen.
Interest rates on EU government bonds were falling after the central bank’s decision. In the afternoon, the interest rate on the German 10-year reference loan fell by -1.5 basis points to -0.340%.
Interest rates on Italian and Greek government bonds fell the most, by -4.7 and -4.5 basis points, respectively.
The interest rate on the US reference bond fell by -0.7 basis points to 1.331%.
In the afternoon, the latest number of U.S. unemployment claims was released, falling more than expected last week to 310,000 from a forecast of 335,000. The following week, there were 340,000 claims for unemployment benefits.
The market is expected to be the first central bank to tighten its monetary policy. The Fed may be the first finger on the trigger if the U.S. job market develops well.
Source: Arvopaperi by www.arvopaperi.fi.
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