Trichet weighing second run at exit

The European Central Bank left interest rates at a record low as policy makers start to consider how to scale back the crisis-fighting measures introduced over the past two years.

The ECB’s Governing Council meeting in Frankfurt today set the benchmark lending rate at 1 percent for a 16th month, as predicted by all 51 economists in a Bloomberg News survey. The ECB will not raise its key rate until the third quarter of 2011, a separate survey showed. President Jean-Claude Trichet holds a press conference at 2:30 p.m.

The euro has rebounded 10 percent since June and stocks have jumped as the debt crisis that threatened to splinter the currency eases and the growth outlook improves. While economists say Trichet is unlikely to outline his exit plans until next month, a successful round of banking stress tests and Greece’s progress in cutting its budget deficit may prompt officials to discuss laying the groundwork for removing stimulus.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell