SaxoTV

The ECB holds rates, but for how long can they hold their nerve?

302 views
May 08, 2014 allister heath, central bank, central bank decision, central bank meetings, central bank policy, central bank rates, central banks, central markets, centralbank, centralbanks, city am, ecb, ecb action, ecb annoucnment, ecb balance sheet, ecb borrowing costs, ecb bund futures, ecb council, ecb draghi, ecb euro, ecb inflation target, ecb meeting, ecb negative interest rates, ecb news, ecb news conference, ecb policies, ecb policy, ecb press conference, ecb rate, ecb rate cut, ecb rate decision, ecb rate decision interest rates, ecb rates, ecb rates decision, eef, eu, euro, euro area, euro dollar, euro zone, eurodebt, eurodollar, europa, europe, european, european central bank, european economy, eurozona, eurozone, eurozone crisis, eurozone recovery, eurusd, iea, jonathan portes, keith lewis, lea jakobiak, macro, macro economics, macro economy, macro events, macro policy, macro strategy, macroeconomics, mark littlewood, niesr, saxo bank, saxo tv, smmt, tradingfloor.com, uk economy, video

As the European Central Bank decides yet again to keep interest rates unchanged, a wider debate is raging as to the eurozone's future. The ECB left its main refinancing rate at a record low of 0.25 percent. The deposit rate and the marginal refinancing rate were left unchanged at zero and 0.75 percent, respectively. The euro strengthened to an eight-week high against the dollar on the announcement.

Mark Littlewood from the Institute of Economic affairs says Europe must change, but appetite for meaningful reform just isn’t there which is a shame, he says. Allister Heath, the Editor of London-based business paper, City AM, says the future for the EU looks dark. He’s predicting big changes over the next few years, noting that euro-sceptic beliefs are growing rapidly.

That concerns senior business leaders. Neil Prothero from the manufacturers’ organization, the EEF, says his members are very clear in their message that they want to remain within the EU because of what he says are superior trade benefits.  Keith Lewis from the Society of Motor Manufacturers & Traders adds the EU is key for the success of the British Motor industry.