ECB keeps Stimulus Program Unchanged

The ECB left its benchmark interest rate unchanged at 0.0%, as forecasts predicted despite Brexit concerns.

Draghi remarks that the Eurozone is resilient to Brexit effect so far, further decisions will be taken at the time of political developments occur. “Following the UK referendum, euro area financial markets have weathered the spike in volatility with encouraging resilience”. Says Mario Draghi.

Additionally, the ECB president mentioned further possibilities to boost the European economy. Draghi said the ECB ready to act using all tools in ECB mandate. He signaled that ECB policymakers are open to additional stimulus program in September but they are not committed to doing so.

Earlier today, the ECB left its key interest rate unchanged at 0.0%, as analysts predicted despite Britain’s decision to leave the European Union.

The ECB will continue to stimulate the economy with its monthly quantitative easing program at approximately monthly €80 billion.

In addition, the European central bank also held its deposit rate for commercial banks at -0.4% and its marginal lending rate remained at 0.25%.

In reaction to Draghi’s speech, the Euro rises against the US Dollar to 1.1050 from 1.0986. However, the pair dropped back to 1.0987 reflecting traders disappointment from Draghi’s speech.

Gold dropped $6 during ECB president speech, and was trading at $1314.88 before bounced back to $1322.01.