by John Galt
July 5, 2012 08:15 ET
It’s a busy morning and the data keeps on flowing but the following announcement by the European Central Bank reeks of desperation:
5 July 2012 – Monetary policy decisions
At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:
The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.75%, starting from the operation to be settled on 11 July 2012.
The interest rate on the marginal lending facility will be decreased by 25 basis points to 1.50%, with effect from 11 July 2012.
The interest rate on the deposit facility will be decreased by 25 basis points to 0.00%, with effect from 11 July 2012.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.
The reaction? One chart, the EUR/USD says it all:
Below 1.23 and everyone can set their hair on fire. Unless of course your name is Bernank where you douse retiree’s heads with gasoline and burn their hair and savings.