ECB offers no big bang measures; keeps interest rates steady

Posted by:
Updated: Friday, August 3, 2012, 8:32 [IST]
 
Share this on your social network:
   Facebook Twitter Google+    Comments Mail

ECB offers no big bang measures; keeps interest rates steady

The eagerly awaited outcome of the European Central Bank (ECB) meet turned out to be a damp squib, with the ECB failing to announce any big bang measures.

The bank has decided to undertake open market operations though.

"The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective, " Mario Draghi, President of the ECB said.

The bank kept euro zone interest rates steady at 0.75 per cent.

Draghi, however, promised to design measures in the future. "The Governing Council will consider further non-standard monetary policy measures according to what is required to repair monetary policy transmission. In the coming weeks we will design the appropriate modalities for such policy measures," he added.

It maybe recalled that last week, ECB President Mario Draghi had built a lot of expectations saying that the ECB would take necessary measures to preserve the euro. Markets across the globe had rallied sharply, particularly markets in Europe.

However, markets across the globe have fallen since the ECB meet held on Thursday, did not announce any big master plan to help the economic woes of the region.

GoodReturns.in

Topics: ecb
Story first published:  Friday, August 3, 2012, 8:28 [IST]
Write Comments

Please read our comments policy before posting

Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
Goodreturns iPad App
Goodreturns iPad App
Download GoodReturns iPad App and enjoy it. Learn more about Oneindia GoodReturns on the App Store.
Download Goodreturns iPad App