ECB leaves interest rates unchanged, will be bought up assets until at least March 2017. – Polish Radio

All this in order to revive the European economy and boost too low current inflation.

At the last meeting of the authorities of the ECB bank president Mario Draghi suggested that in March may be decided on further loosening of monetary policy.

Analysts did not expect such a courageous steps

But hardly anyone expected such a bold step. The European Central Bank has reduced to zero, the main interest rate in the euro zone. So far, it amounted to 0.05 percent.

also lowered the deposit rate, which was still negative. With -0.3 percent to -0.4 percent.

Purchase of bonds increased to 80 billion euros per month

In addition, the bank has extended a controversial program of buying bonds in the euro area . Every month the ECB will buy up bonds worth 80 billion euros, and not so far 60 billion.

The bank’s decision is primarily a reaction to the very low inflation in the euro area.

The message bank responded already markets. It weakened the euro. Index of the Frankfurt Stock Exchange climbed to turn to the highest level in two months.

Markets surprised by the decisions of the head of the ECB

Currency markets not quite decided what to do the information provided by Mario Draghi – writes in his commentary on Matthew Ryan, an analyst at Ebury.

As noted, the euro weakened after the announcement of the decision of the ECB to better than expected extension of the asset purchase and cut the interest rate and the deposit.

Draghi rule out further reductions, gold up strengthens

However, comments the head of the ECB, on the exclusion of future reductions, resulted in an increase in the level of the zloty, which ended the conference Draghi significant appreciation.

̶ We expect that the scale of the program of quantitative and rate cut in the coming weeks will exert pressure on the euro, says Matthew Ryan, an analyst at Ebury.

Markets awaited interest rate cuts

̶ It was a key decision , which for several weeks awaiting financial markets. Therefore, after the announcement immediately reacted to exchange very solid increases says Marek Wołos economist at the Higher School of Business and Administration in Lublin.

In contrast, a surprise was the announcement of Draghi’s eventual depletion of stimulus measures

̶ big surprise was the statement of the head of the ECB, who announced that the catalog of measures to stimulate the exhausted and perhaps it’s the last such aggressive action of the bank – says Wołos.

After the rally, major drops

This statement caused the disappointment of investors and their immediate reactions – markets gave up much of the gains that followed the announcement of interest rate cuts, emphasizes the analyst.

Euro up

ECB decision also caused high volatility in currency markets – adds the expert.

He says the gold at first fell to the euro to below 4.30, which is the lowest in December, but when the head of the ECB announced a reduction in the intervention, the situation was reversed and the euro began to grow in strength.

Thursday evening euros cost – 4 zł and 34 gr, dollar 3.88 3.94 Swiss franc and the pound is 5 zł 55 gr.

IAR, Ebury, abo, jk