Baku. 11 March. REPORT.AZ/ At the regular meeting held today, the European Central Bank (ECB) cut the discount rate from 0,05% to 0%. Note that the forecast of analysts on rate has remained stable.
In addition, ECB reduced interest rates on deposits in accordance with the forecast from -0,3% to -0,4%, volume of monetary expansion increased by 33% from 60 billion euros to 80 billion euros.In addition to ECB bank bonds it would buy back an additional company bonds. Bank reduced debt from 0,3% to 0,25%.
After this decision, euro has begun to fall rapidly in global foreign exchange market, exchange rate against the dollar fell by 1,4 %, from 1,0980 USD/EUR to 1,0840 USD/EUR in the short term.
Currently global financial markets waiting for press conference by Mario Draghi the chairman of the ECB.
Expectations in the Euro Zone economy will be announced at the press conference.
ECB decisions were more severe than investors forecast.
Analytical group of Report belives that if USD / EUR exchange rate can not find the point of balance at the level of 1.08, it could go down to the level of 1.06.