ECB rate cut of 50 basis points to 2%, as expected.

[RTFX-Trading]

ECB rate cut of 50 basis points to 2%, as expected.

The European central bank has lowered its interest rates this afternoon at 13h45: its refi rate by 50 basis points to 2%, the rate of deposit facility is reduced from 2% to 1%, while the marginal lending rate is maintained at 3%.

The President of the European Central Bank has subsequently delivered a pessimistic speech at 14:30 about the prospects for the euro area:
- It is expected an inflation rate unusually low 09.
- The next key decision will be held in March, so no monetary policy is to be expected in February, which normal.
- The fall of Euribor 3 is visible.
- We anticipate a further reduction of risk in consumption.
- We expect a further slowdown of economic importance
- The decision on rates was unanimous.
- The euro area is undergoing a significant slowdown.
- Domestic demand should remain very low.
- Etc ...

As against the following statement appears to me very important:
Mr Trichet said: "We believe that the lower rates by 50 basis points takes into account a further slowdown in the economy." This is perhaps a break from the cycle of interest rate cuts by the ECB. The euro / usd hit the lowest at 1.3072 at the lowest response to the news media near the first daily support at 1.3077, it is currently at 1.3170. I would not be surprised to see a fairly strong rise of the euro soon, the market likes the saying "buy the rumor, sell the fact."

[RTFX-Trading]

Ci-dessous, l'historique des changements de taux de la BCE. source : http://www.ecb.int/stats/monetary/ra.../index.en.html