Super Mario (Draghi) Enters With A Bang: ECB Cuts Rate By 25 bps To 1.25%

Thursday, November 3rd, 2011

The former Goldman banker cutting rates two days after his appointment? Stunning. Next up, we get to listen to an Italian accent instead of a French one for the first time in a decade, at the press conference to be held shortly. The EUR reaction is appropriate: completely schizophrenic.

PRESS RELEASE
3 November 2011 – 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 1.25%, starting from the operation to be settled on 9 November 2011.

The interest rate on the marginal lending facility will be decreased by 25 basis points to 2.00%, with effect from 9 November 2011.

The interest rate on the deposit facility will be decreased by 25 basis points to 0.50%, with effect from 9 November 2011.

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.

European Central Bank
Directorate Communications
Press and Information Division
Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404
Internet: http://www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Tags: 3 November, 9 November, Appointment, Basis Points, Bps, Decade, ECB, Eurosystem, Gold, Goldman, Governing Council, Information Division, Interest Rate, Italian Accent, Main Refinancing Operations, Marginal Lending, Mario Draghi, Monetary Policy Decisions, Press Release, Refinancing, Super Mario
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