The Eurozone is showing positive signs of growth and inflation. But the risk premium levels of the peripheral countries are still very high compared with those at the start of this year. In the short-term, they will move to the political beat, particularly any news on the French election.
J. L. M. Campuzano (Spanish Banking Association) | The Fed raised rates yesterday, basically reducing the expansive nature of monetary policy. After listening to ECB board member Praet’s at a G20 meeting, it doesn’t look as if the ECB will raise rates quickly. But conditions could present themselves which favour a change in bias in monetary policy.
Once again Mario Draghi followed the expected script: it kept interest rates at 0%, where they have been for the last year; it left the deposit facility unchanged at -0.4% and did not modify the debt purchasing programme.