Baku. 26 October. REPORT.AZ/ As expected, the European Central Bank left the interest rate at 0% yesterday. The ECB's rate on bank overnight deposits, which is currently its primary interest rate tool, remained at -0.4%, the rate on the marginal lending facility - the emergency overnight borrowing rate for banks - remained at 0.25%.
Report’s analytical group says that the ECB is expected to keep the interest rate stable after the summer of 2019 and increase to 2% in the mid-term period.
However, the interests in Europe are still stable. Unlike ECB, the US Federal Reserve System continues to increase the interest rate. Notably, the Federal Open Market Committee (FOMC) increased the interest rate by 0.25 percentage point from 1.75-2% to 2-2.25% on September 25-26. The rates will reportedly be increased in December.
Report’s analytical group believes that EUR can make up USD 1-1.1 by the end of this year on the background of ECB’s keeping rates stable, Fed’s increasing.
USD/EUR rate started 2018 with 1.2. Currently it is around 1.13-1.14.