ECB Holds Interest Rates Steady Amid Economic Concerns
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25 July 2019
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ECB Holds Interest Rates Steady Amid Economic Concerns
The European Central Bank (ECB) has concluded its highly anticipated meeting, announcing that interest rates will remain unchanged. The main financing operations rate stays at 0.00%, the marginal lending facility at 0.25%, and the deposit facility at -0.40%. The ECB also signaled its commitment to maintaining rates “at their present or lower levels” through at least mid-2020.
In preparation for further economic support, the ECB has tasked its Eurosystem Committees with exploring options for extending quantitative easing.
As of now, EUR/USD is trading at 1.1174, marking a 0.31% increase. This uptick follows ECB President Mario Draghi’s cautious remarks about the state of the European economy, which have spurred market volatility.
The euro has rebounded sharply from its earlier support level of 1.11035 and is quickly approaching the 1.1200 mark. If the upward momentum continues, we could see the euro break past this resistance level or oscillate within this range in the short term.
Market participants remain alert as uncertainty looms over the ECB’s next moves and their potential impact on the eurozone economy.
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