European Central Bank holds rates: But here’s what it needs to do
Today's third central bank decision.
Expected to be a bit more interesting than the last two – the European Central Bank disappointed.
While consensus was for no change, a few market watchers suggested we'd see a small cut, something in the region of 0.1 to 0.15 percentage points.
Societe Generale's Sebastien Galy say that the "ECB has long known it should ease" but it can't get the political support to do so.
Nowhere is the ECB's failure more evident than in the downward trend of inflation, while the dovish Bank of Japan has managed to steer the Asian economic out of deflationary waters.
The euro area sorely needs looser policy to buoy collpasing aggregate demand.
The afternoon has seen Bank of England and Bank of Ghana decisions, to hold and tighten respectively.
'Proper, dirty, unsterilized QE'– what the ECB should do acc to Danny Gabby, Dir, Fathom Consulting #QE #ECB @CNBC @CNBCWorld
— Louisa Bojesen (@louisabojesen) February 6, 2014