Euro rallies as Draghi disappoints

Extends QE to at least March 2017

Daniel Flynn
clock

The euro shot up against all major currencies this afternoon while equity markets dropped as ECB president Mario Draghi failed to deliver the stimulus package investors had expected.

Speaking at a press conference following the central bank's policy meeting today, Draghi (pictured) said the ECB will cut the interest rate on overnight bank deposits from -0.2% to -0.3%, with effect from 9 December 2015. Many expected a 20 basis point cut to the deposit rate, down to -0.4%. The ECB will also extend the monthly €60bn quantitative easing programme to run until the end of March 2017 or "until the ECB council sees a sustained adjustment in the path of inflation". The euro rose by nearly 2.3% against the dollar to $1.0860 and up 1.5% against sterling to trade at €1.3871...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Services price inflation remains sticky

Valeria Martinez
clock 01 February 2024 • 1 min read
Eurozone inflation rises to 2.9%

Eurozone inflation rises to 2.9%

Driven by energy prices

Elliot Gulliver-Needham
clock 05 January 2024 • 1 min read
European mutual funds suffer €19bn outflows in October

European mutual funds suffer €19bn outflows in October

LSEG Lipper European Fund Flows

Cristian Angeloni
clock 27 November 2023 • 2 min read
Trustpilot