Markets in Asia and India are trading flat ahead of the ECB meet today where the ECB President Mario Draghi is expected to announce his intentions for propping up the slowing Eurozone. With rates at 0.75 percent, a 25 bps cut could send the markets higher but if rates are steady and nothing notable is announced in the policy meet, then there could be high chances of the markets trading flat or lower.
All eyes were on the U.S Federal Reserve’s Chairman Ben Bernanke yesterday for if he would announce a cut in the benchmark interest rates. Although he stated that the Fed could continue asset and bond buying activity, a rate cut did not happen. He stated that the slowdown in the economy was noticeable with a raft of disappointing data. This made Bernanke’s statement a total non-event.
UK would also be announcing its decision on benchmark interest rates today. Rates are at 0.50 percent and there could be news on asset purchasing. But all eyes will be focused more on Draghi than the Bank of England, but no doubt , we view both these events are very important.
Categories: General News