ECB Set to Signal Rate Cut as Economy Slows: Decision Day Guide | Metals Mine

  • ECB Set to Signal Rate Cut as Economy Slows: Decision Day Guide

    From bnnbloomberg.ca

    The European Central Bank is set to signal that it is once again preparing to step in to support the euro zone. On the eve of the seventh anniversary of President Mario Draghi’s landmark “whatever it takes” speech, policy makers will decide how to confront an economic slowdown amid risks from U.S. protectionism to Brexit. Most analysts predict that the Governing Council will change its policy language to set markets up for a September cut in the deposit rate. In deciding to act, the ECB would be following a wider trend of global policy easing from South Africa to India and Australia. The U.S. Federal Reserve is ... (full story)

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EF5
Jul 24, 2019 8:47pm
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0% isn't a good point to start your easing cycle.

A difficult road lies ahead for central banks since there's little to no cushion for easing now. While other central banks are struggling to implement sufficiently accommodation policy, the ECB will have a unique challenge of not having a solid legal framework to take extraordinary measures. Lagarde will have her work cut out for her to say the least.
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Trader#7DAD
Jul 25, 2019 2:57am
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When has any legal framework been a hindrance to the ECB?

QE was legally circumvented and so will every other measure they wish to implement.

Politicians will be told of the horrific events that may occur if the ECB cannot do what they want and the politicians will then lean on the courts to say everything is legal.
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