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:
PRESS RELEASE
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.
Recent Comments