Focus of the yesterday's session was on ECB interest rate decision and following press conference. The ECB said it was lowering its benchmark interest rate to a record-low 0.0% from 0.05%, surprising market players who were expecting no change. The central bank also cut its deposit facility rate to -0.4% from -0.3%, in line with market expectations. Meanwhile, the central bank reduced its marginal lending rate to 0.35% from 0.30%.
The ECB also said it was to increase the size of its monthly quantitative easing program to approximately €80 billion from the current €60 billion, starting in April, with investment-grade bonds added to the mix of assets eligible for purchase.The central bank also announced new series of four targeted longer-term refinancing operations to be launched in June. However, at the following Press
Conference ECB President Mario Draghi pointed out that he sees no need for further rate cut in the near future and all of the introduced monetary steps goal at solid recovery of the
inflation and heading towards ECB objectives.
In the US session Unemployment Claims figures were released. In the week ending March 5, the advance figure for seasonally adjusted initial claims was 259,000, a decrease of 18,000 from the previous week's revised level. Analysts were forecasting decrease to 272,000. The previous week's level was revised down by 1,000 from 278,000 to 277,000. The 4-week moving average was 267,500, a decrease of 2,500 from the previous week's revised average. The previous week's average was revised down by 250 from 270,250 to 270,000.
There will be no data releases both from Eurozone and USA tomorrow, but markets are likely to still be influenced by ECB stanzas.
