Jul 5
ECB meeting: Positive signals ignored
- ECB kept the refinancing rate unchanged at 1.0%. We expect the interest rate to be kept on hold for at least a year. - Staff projections for growth were revised downwards – in particular for 2009. The ECB projects the economic decline to be slower for the rest of the year than it was in Q1, but does not see positive growth before mid 2010. We believe this is far too negative. - The purchase of covered bonds for EUR 60bn will be directed towards purchases in both the primary and secondary
