All the latest economic and financial news, including the ECB’s monthly press conference at 1.30pm GMT, from Cyprus Bank of England leave rates unchangedEuro hits 11-year lowIntroduction: ECB and Bank of England meetingPhotos: Anti-austerity protests in Nicosia 12.54pm GMT #ECB left rates unchanged as it prepares to start QE program. Main rate remains at 0.05%, depo rate at -0.2%. pic.twitter.com/KP7lZK92MH 12.53pm GMT Here’s a snap from today’s ECB meeting in Cyprus:Governing Council gathers in Nicosia pic.twitter.com/6dJqhQeokV 12.49pm GMT So, the ECB’s main refinancing rate remains at 0.05%, the lowest level level.The deposit facility rate remains at -0.2%, so commercial banks will be charged for leaving deposits at the ECB. 12.46pm GMT Here comes the European Central Bank decision.... and it’s also left its benchmark interest rates unchanged.European Central Bank leaves rates unchanged #ecb #euro 12.44pm GMT One central bank decision down, one to go....Next up is the #ECB at 12:45pm with its interest-rate announcement.No change is likely as we will hear about #QE at 1:30 but you never know! 12.44pm GMT Britain’s small firms are delighted that interest rates remain so low. John Allan, Chairman of the Federation of Small Businesses (FSB), says“The Monetary Policy Committee has made the right decision in maintaining the current interest rate, with inflation at a record low of 0.3% and the risk of long term deflation still present in Europe.“Many of our members plan to grow their businesses in 2015, and low interest rates are giving them confidence to invest in their firms by hiring new staff and increasing wages.” 12.33pm GMT Jeremy Cook of World First also reckons that UK interest rates could be unchanged until 2016*:“We are coming to the end of this ultra-low interest rate experiment in the UK, although I believe there is the possibility that a year from today, rates will remain at 0.5%. Unemployment is falling healthily, the declines in inflation are temporary and soon to come to an end and growth is becoming increasingly resilient.@graemewearden I know things are a bit sluggish but this (from the liveblog) seems excessive. pic.twitter.com/Vd5cfJ1UGX 12.15pm GMT Martin Beck, senior economic advisor to the EY ITEM Club, reckons UK interest rates might not rise until early 2106 2016, because inflation is so far below target.He adds:While the risks of an earlier rate rise have probably increased lately, we still think it most likely that the Bank will wait until February 2016, by which time inflation will be back above 1% and heading towards the 2% target.The MPC may have chalked up six years without raising Bank Rate, but we think it will narrowly avoid making it seven.” 12.03pm GMT Economists have consistently failed to predict that UK interest rates would stay this low for so long, analysts at RBS point out.Market expectations for Bank Rate have changed a lot since 2009 & they have consistently been well wide of the mark. pic.twitter.com/Scylaoq9Qh 12.02pm GMT BOE holds rates for 72nd month in a row. In other news sky still blue, beer still delicious, death still inevitable 12.00pm GMT Britain has just entered its seventh year of record low borrowing costs.@BankofEngland maintains #BankRate at 0.5% and the size of the Asset Purchase Programme at £375 billion 11.51am GMT Just 10 minutes to go until the Bank of England announces its decision on interest rates.Oh the suspense, until analysts at ING ruined it....ING slightly jumping the gun with its analysis about why the @bankofengland hasn't changed rates/QE today pic.twitter.com/8pv6RQV2Gw 11.49am GMT 2014 was a good year for Willie Walsh, the boss of British Airways’ parent company IAG.Walsh picked up £6.4m last year, an increase of almost 30% on 2013. That’s *despite* turning down a 2% increase in his basic salary. Leading by example, apparently...."Once again the CEO led by example in proposing restraint in exec pay" British Airways/IAG remuneration cttee as Willie Walsh gets £6.4m 11.02am GMT Europe’s stock markets are inching higher ahead of the European Central Bank’s decision on monetary policy, and subsequent press conference.Central banks have been the driving force behind the booming stock markets over the past few years and now it is the ECB’s turn to flood the financial system with money. Eurozone equity markets are highly dependent on the stimulus package from the ECB and traders will be looking for Mario Draghi to give the green light signalling the next round of buying. 10.23am GMT Hopes that Greece’s labour market was recovering have been dented by new data, showing that the seasonally-adjusted unemployment rate rose in December to 26.0%, from 25.9%.Greece’s Unemployment Rate Increases to 26 Percent in December pic.twitter.com/qJVk1HJtPRStill rising RT @MarkitEconomics Unemployment rate in Greece at +26.0% in December from +25.9% in November 10.10am GMT Over in Athens the Greek finance ministry has issued a tersely-worded statement denying that the government’s reforms – being fine-tuned ahead of Monday’s meeting of euro area finance ministers – was “discussed” at a preliminary Euro Working Group session on Wednesday.“The finance ministry categorically denies reports that the contents of the Greek proposals were discussed during yesterday’s Euro working group,” it said.The statement also rejected reports that teams representing the “institutions” - the EU, ECB and IMF keeping the debt-stricken economy afloat and until recently known as the Troika - had also arrived in Athens. “They are beyond reality,” it said. 9.52am GMT Drip, drip, drip... RT "@Efiefthimiou ECB raised ELA for #Greece banks by 500mln euros to 68.8 bln euros vs 68.3bln via @capitalgr" 9.50am GMT Greek financial website CapitalGR is reporting that Greece’s banks have been given another €500m of emergency liquidity by the ECB.ECB raised ELA for #Greece banks by 500mln euros to 68.8 bln euros vs 68.3bln via @capitalgr 9.22am GMT Britain’s auto industry has posted its longest ever streak of sales growth.New UK car registrations were 12% higher year-on-year in February, suggesting consumer spending remains robust.New car registrations last month up 12% on year earlier - 36th month of growth, which SMMT says is longest on record. 8.59am GMT 8.57am GMT Foreign exchange traders have pushed the euro down to its lowest levels since September 2003, ahead of the ECB’s press conference later today.The euro hit $1.1028 in early trading, on anticipation that Mario Draghi will announce details of the eurozone’s new quantitative easing programme. 8.37am GMT Cyprus’s president Nikos Anastasiades will be very happy that ECB president Mario Draghi showered praise on his government last night (flags up our correspondent Helena Smith)“It is safe to say that he programme has been yielding very concrete results, in fact even better results that were forecasted two years ago.” The restructuring and recapitalisation of the banking sector has led to a significant improvement in the health of the financial system.... Indeed it is remarkable that Cyprus is on track to exit the excessive deficit procedure two years ahead of the 2016 deadline. 8.25am GMT Fresh data from the Halifax building society suggests Britain’s housing market is cooling.Prices fell by 0.3% month-on-month in February, Halifax says. That means prices are up by 8.3% over the last year, down from 8.5% in January.The Halifax indicate average house prices down last month by 0.3 % #timetosell http://t.co/VYYWhF1RF6 pic.twitter.com/cpHgHiXQKhConsequently, we expect house prices to rise around 5% in 2015. 8.13am GMT Predictions that Germany’s economy is strengthening have taken a knock this morning.It’s a reminder that Germany’s growth at the moment is driven by consumption and not by the manufacturing backbone of the economy.... 8.01am GMT Cyprus’s finance minister has defended the country’s austerity programme, in an interview with Bloomberg TV:#Cyrpus finance minister Georgiades tells @FerroTV: Our reform and consolidation plan is delivering.#Cyprus finance minister Georgiades tells @FerroTV:We look fwrd to participating fully in the #ECB #QE program which will start now. 7.51am GMT Today’s European Central Bank meeting in Nicosia comes ahead of the two-year anniversary of Cyprus’s bailout deal this month.Some 18 groups organized the event, including left-wing trade unions, teacher and family groups, as well as student organizations.Some protesters carried banners reading, “End to austerity, we want jobs,” and “Save the people, not profits and banks.” 7.43am GMT Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. The Bank of England is facing an unprecedented criminal investigation by the Serious Fraud Office over emergency lending measures it took at the height of the credit crisis to inject cash into financial markets.In late 2007 and early 2008, as the authorities struggled to prevent financial markets from freezing up, banks were invited to bid to borrow funds from the Bank of England, in exchange for collateral, in a series of so-called “auctions”.“There are no preparations for a third credit package and the country does not need it.”Varoufakis: Greece does NOT need a third bailout - http://t.co/zeQ23R1nZb pic.twitter.com/hiPeq9PAvS Continue reading...
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