ECB Holds Rates Despite Low Inflation

January 9, 2014 Share Print 0

The European Central Bank left interest rates at a record low on Thursday, holding off fresh action for now while it assesses whether it needs to respond to cost-of-living numbers weak enough to raise concerns about deflation.

The decision to hold the main rate at 0.25 percent, which was widely expected, came despite news earlier this week that euro zone inflation slowed to 0.8 percent in December – well below the ECB’s target of just below 2 percent.

Attention now shifts to ECB President Mario Draghi’s 1330 GMT news conference, at which he will explain the reasoning behind this month’s decision.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.