Features

Money Minute, Thursday 12 September: ECB interest rate decision

Money Minute is all about the European Central Bank today, with markets expecting an interest rate cut as a bare minimum.

Welcome to Thursday's Money Minute in which we preview the big stories of the day in just 60 seconds.

It's all about the European Central Bank today.The announcement is made at 1:45pm UK time. But the real market-moving meat will come in ECB boss, Mario Draghi's press conference at 2:30pm.

Markets expect an interest rate cut as a bare minimum. The key eurozone rate is already sitting at negative 0.4%, but Draghi is expected to take it further into negative territory.

But that's just the beginning. Markets are betting on a much bigger stimulus package - the "big bazooka" as it's been nicknamed.This is likely to take the form of more quantitative easing, where the ECB prints money to buy government bonds.

The market is hoping for at least €30bn of QE a month, potentially combined with measures to prevent negative interest rates from hurting the profitability of eurozone banks.

The risk is that Draghi's fellow policy makers will object to the scale of the stimulus and prevent him from acting as aggressively as he would like.If that happens, stocks are likely to fall.

Recommended

UK inflation slides to 8.7% - what does it mean for your money?
Economy

UK inflation slides to 8.7% - what does it mean for your money?

Inflation has dropped below 10% for the first time in months, but with food prices at a 45-year high, is this good news and what does it mean for your…
24 May 2023
Why the UK equity market is shrinking
Economy

Why the UK equity market is shrinking

The crisis has been building for 25 years, says Max King, and it will take decades to reverse the trend.
18 May 2023
How inflation is hitting you in the pocket
Economy

How inflation is hitting you in the pocket

Our money has been debased for decades. The blame lies with the advent of fiat money, says Dominic Frisby.
11 May 2023
NIESR: ‘Squeezed’ middle class households now £2,560 a year worse off
Economy

NIESR: ‘Squeezed’ middle class households now £2,560 a year worse off

Britain will feel like it’s in recession even if it isn't after a significant drop in middle-class income - and the poorest households are even worse …
11 May 2023

Most Popular

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?
Savings

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?

Two fortunate NS&I Premium Bond winners are now millionaires. Find out here if you’re one of them.
1 Jun 2023
3 renewable energy stocks to buy
Investments

3 renewable energy stocks to buy

These stocks look poised to benefit as the world transitions to a net zero economy.
31 May 2023
Housing slowdown ‘deeper than anticipated’ as property sales slump
House prices

Housing slowdown ‘deeper than anticipated’ as property sales slump

New data from HMRC shows a fall in property sales - now experts predict a delay to the housing recovery
1 Jun 2023