European Central Bank Inches Closer To Buying Bonds But Does Not Act
The terms of the bond-buying program are still being determined by E.C.B. officials but more details will be released in the coming weeks, the Los Angeles Times reported. The benchmark interest rate remained unchanged at 0.75 percent.
Some investors were disappointed that the bank would not be lowering the interest rates for indebted countries or issue low-interest bailout loans after Draghi pledged last week to do "whatever it takes" to preserve the euro.
“Once again, we have no commitment to action,” Carl Weinberg, chief economist of High Frequency Economics told the New York Times. “Traders and investors who expected immediate action are, and should be, disappointed.”
The New York Stock Exchange and Dow Jones Industrial average both fell after Draghi's announcement.
“The euro is irreversible,” Draghi said, blaming volatility in the markets on uncertainty over the future of Europe's common currency.
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