ECB Guidance Is Not Tilted Toward Rate Hike

They were painted on occasion of the upcoming

"The market believes Draghi's take on inflation is wishful thinking", said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG, which predicts the European Central Bank will cut the deposit rate toward the end of this year and extend its low-rate pledge to mid-2021.

Analysts said the ECB's decision reflects concerns over the developing trade war between the United States and China and its potential to undermine the Eurozone's own worldwide trading prospects.

Mr Draghi told a news conference following the policy announcement that the decisions taken had been unanimous.

The move comes just days after the Reserve Bank of Australia (RBA) reduced the cost of borrowing to a historic low, cutting its rates to 1.25 percent amid slowing economic growth hitting levels not seen since the financial crisis.

Draghi laid out the latest set of European Central Bank quarterly economic forecasts, which called for growth of 1.2 percent and inflation at 1.3 percent this year, slightly higher than in its March predictions for the 19-nation eurozone.

He referred to the current growth expansion in the euro area (1.2% this year) and low unemployment level (7.6% in April).

The ECB's willingness to act came as the incoming economic data and survey information "point to somewhat weaker growth in the second and third quarters of this year", Draghi said.

The ECB also said on Thursday it will let banks borrow from it at rates just 10 basis points above its minus 0.4 per cent deposit rate provided they beat the ECB's lending benchmarks in a new targeted longer-term refinancing operation or TLTRO. The ECB does not see reasons for lower rates considering how low they've gone already.

Raiders to play preseason game in Winnipeg vs. Packers | AP sports
The NFL has not staged a game in Canada since the Buffalo Bills' six-year run at Rogers Centre in Toronto ended in 2013. They'll then travel to Baltimore to play then Ravens before heading to Winnipeg during the preseason's third week.

WATCH as England's Jason Roy knocks over umpire after World Cup hundred
Then, Bangladesh pacer Mashrafe Mortaza broke the partnership in the 19th over as Mehidy Hasan caught Bairstow at cover-point. Although host England is a strong team but it should not make the mistake of considering Bangladesh as weak.

Robert Downey Jr Unveils Tech Initiative To Save Earth
The announcement was made Tuesday night in Las Vegas during the end of his keynote speech at Amazon's re:Mars conference. The movie star says he plans to start an organization next year called the Footprint Coalition .

But Mr Draghi, whose term ends on Oct 31, is conscious that the ECB's policy arsenal is almost depleted after years of stimulus.

Economists polled by Reuters expect rates to stay unchanged and forecast a first rate hike only in 2021.

The decision, which was reached unanimously by the central bank's monetary policy committee, comes after not only a landslide win for Modi, but also a concerning slowdown in economic growth.

"Turning the QE taps back on by the end of the year is an increasingly probable scenario", said Nancy Curtin, Chief investment officer at Close Brothers Asset Management. In contrast, bets that the Fed will slash borrowing costs this year have risen since Powell signaled this week that he's open to easier policy as he watches global trade tensions.

"The biggest risk for the European Central Bank are the only weakly anchored inflation expectations", DIW's Fratzscher said.

Others proposed restarting the asset purchasing programme, finalised last December, while other members defended further monetary policy guidance, beyond the mid-2020 scenario.

The ECB's favoured gauge of market inflation expectations had earlier fallen to its lowest since 2016 while money market pricing showed investors see nearly a 70% chance of a 10 basis point cut in ECB rates by the end of the year.

Draghi is also expected to stick to his message that the economy's rebound is merely delayed and not derailed.

Related News:

  • VA finalizes Community Care rule as stakeholders watch warily

    VA finalizes Community Care rule as stakeholders watch warily

    Hampton has increased staff in its Office of Community Care and call center, two areas where it expects to see greater traffic. This is day one of a reformed VA system that will give Veterans more control and ownership of their healthcare choices.
    India take on Australia amid Dhoni's glove controversy

    India take on Australia amid Dhoni's glove controversy

    Bumrah set the tone for India's win against South Africa on Wednesday with his two early strikes. Kohli said Bumrah, 25, would be a "massive factor" for his team at the 50-over showpiece event.
    LG Teases W-Series Phone with Triple Rear Cameras in India

    LG Teases W-Series Phone with Triple Rear Cameras in India

    More details regarding the upcoming smartphone series have now surfaced, thanks to a new report from The Times of India . As seen on the flagship LG smartphone, the W-series smartphone also comes with the proprietary Boombox sound technology.
  • Trump to join D-Day commemorations in Normandy

    Trump to join D-Day commemorations in Normandy

    The two leaders also have a mounting list of policy disagreements, from Iran to climate change to trade. See some of the Queen's most memorable moments in the gallery below.
    WHO alarmed over STDs' spread

    WHO alarmed over STDs' spread

    "We are seeing a concerning lack of progress in stopping the spread of sexually transmitted infections worldwide", he said . HPV infection is responsible for 528,000 cases of cervical cancer every year, resulting in 266,000 deaths.

    Amazon says Alexa will soon speak to you in Hindi

    But it seemed to be a great assistance by the digital units to frame a single question that should appropriate for the user needs. To this end, Amazon had introduced Cleo skill enabling customers in India help Alexa learn Hindi and other local languages.
  • Putin, Xi hit back at US dominance at Russia economic forum

    Putin, Xi hit back at US dominance at Russia economic forum

    Russian Federation has long complained about Western sanctions imposed on it over disputes including its behavior in Ukraine. China is racing to be a global leader in advanced wireless network.
    Trump announces deal with Mexico to avoid tariffs

    Trump announces deal with Mexico to avoid tariffs

    Senate Minority Leader Chuck Schumer greeted Friday night's news with sarcasm. "I'm optimistic we can achieve that". Through June 5, 10,393 mostly Central Americans have been sent back to Mexico since the program started in January.
    Life imprisonment for German nurse who killed at least 100 patients

    Life imprisonment for German nurse who killed at least 100 patients

    Prosecutors are asking for a conviction on 97 counts of murder, saying that in three cases insufficient evidence was presented. Christian Marbach, a spokesman for the affected families whose grandfather was among the victims, doubted Hoegel's sincerity.
  • Infinity London is a 360-degree infinity pool on a skyscraper

    Infinity London is a 360-degree infinity pool on a skyscraper

    This material, the company claims, has a refractive index similar to water, so the pool would look like a solid block of water. Another notable trait of the rooftop pool is that it's being built in London , where it rains 106 days a year on average.
    Marcia Cross Feels Great as She Recovers From Anal Cancer

    Marcia Cross Feels Great as She Recovers From Anal Cancer

    Symptoms include bleeding from the anus or rectum, discharge from the anus, pain around at the anus and a change in bowel habits. He went into remission, but almost a decade later, his disease came up again when Cross was diagnosed with anal cancer .
    Amanda Anisimova: The US teen sensation aiming to emulate idol Sharapova

    Amanda Anisimova: The US teen sensation aiming to emulate idol Sharapova

    Who will be crowned the Roland-Garros 2019 Champions? She will face unseeded Czech teenager Marketa Vondrousova in the final. Instead, Barty's parents will have to make do watching the biggest match of their daughter's life in Britain.

Most liked

Gwyneth Paltrow apparently forgot that she was in Spider-Man: Homecoming
Favreau directed her in Iron Man and its sequel. "No you were in Spider-Man also", he tells her. "Yes, we were... Paltrow did appear in several Avengers movies as Pepper Potts, including this year's Avengers: Endgame .

Here's 15 minutes of Star Wars: Jedi Fallen Order debut gameplay
Pop these times into your diary and make sure you return to read all the big gaming news as it's revealed on the day. Exploration is linear and seems to funnel quickly into myriad skirmishes, which is always a plus for an action romp.

FIFA 20 Will Include a Street Football Story Mode and Online League
The FIFA 2020 website also mentions that gear for customizable players can be earned through in-game challenges. It's not the first recent EA Sports title to invoke some Street roots into an annualized game.

The new Champions League format UEFA are eager to introduce from 2024
The statement added the organisation will raise the matter with the ECA this week. The Premier League also issued a statement opposing the proposals.

New FromSoftware George R.R. Martin Game Has Been Leaked
Such was the case with the rumblings of an open-world fantasy RPG from Game of Thrones' creator George R.R. This is huge news, but it's still unclear what that exactly means, in terms of scope.

France make winning start to Women’s FIFA World Cup
The host country, ranked fourth in the world, is considered by many the top title challenger heading into the tournament. Les Bleues are ranked fourth in the world and are seen as the second favourites after the holders, the United States.

Boris Johnson wins misconduct in public office case
Mr Darbishire said the only rational conclusion was that the case was politically motivated and therefore vexatious. Home Secretary Sajid Javid wrote on Twitter: "Very glad to see the court case against @BorisJohnson thrown out".

Mega Millions $530M winning ticket sold in California
According to Mega Millions , one ticket won $2 million and four others won $1 million in Tuesday night's drawing. It is the largest jackpot drawing since last October, when the jackpot was a staggering $1.5billion.

Chinese cartoonist announces protest against Twitter for refusing Tiananmen emoji
The Chinese territory has relatively greater freedoms than the mainland, though activists have said they fear those freedoms are eroding.

PM Narendra Modi arrives in Maldives on 1st foreign visit after re-election
Modi had visited the Maldives last November to attend President Solih's swearing-in but it wasn't a full-fledged state visit. Modi will leave the Maldives on Sunday morning for Colombo and make a brief stop there before returning to Delhi.

N. Korea Warns of 'Limit to Our Patience' on Nuke Talks
United States fficials working with Kim Yong Chol have not been seen since the summit. North Korea has always been labeled one of the world's worst human rights violators.

Boston Bruins: Brad Marchand needs to rid Stanley Cup woes
Bruins coach Bruce Cassidy did not have an update on Grzelcyk, who remains in Boston after entering concussion protocol. Fortunately for them, the Bruins top line has been stagnant to start the series but you can't expect that to continue.

There is more in bottled water than you think, says scientists
The researchers added that a person's microplastics consumption rises based on personal food choices they make. Researchers estimate the amount of microplastics consumed by Americans each year.

NBA Finals have been no competition - for the Raptors
As intensity picked up, Draymond Green came up with a chase down block on Kyle Lowry that sent Oracle Arena into a frenzy. Thompson is expected to return to action, while Durant's availability for the remainder of the series remains hazy.

Donald Trump calls Bette Midler a 'washed up pyscho'
Midler responded to the attack, thanking everyone who came to her defense during her personal "Battle of the Bulge". President Trump was mocked on Twitter for his bulging formal wear during a state banquet at Buckingham Palace.