Thursday, September 4, 2014

Gold Jumps 1% in Euros on ECB cutting rates

From the ECB's monetary policy decision:

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:
  • The interest rate on the main refinancing operations of the Eurosystem will be decreased by 10 basis points to 0.05%, starting from the operation to be settled on 10 September 2014.
  • The interest rate on the marginal lending facility will be decreased by 10 basis points to 0.30%, with effect from 10 September 2014.
  • The interest rate on the deposit facility will be decreased by 10 basis points to -0.20%, with effect from 10 September 2014.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.
 In reaction gold price in Euro has jumped 1% mainly due to a decline in the EUR:USD rate