The ECB decided to keep interest rates on hold yesterday, despite market expectations of a ten-point cut on the deposit rate. Christine Lagarde announced as a stimulus package, expanding its asset purchase programme by €120 billion. Observers pointed to the difference with Mario Draghi’s famous ‘whatever it takes’ reaction to the 2012 economic crisis.
However, despite not meeting market expectations, this did not stop the euro from recovering its losses against the pound, benefitting from concerns in the UK over coronavirus.
Donald Trump has extended a travel ban to Schengen Zone countries. Although he later clarified that this would not involve goods, it raises fears of further disruption to the Eurozone economy.
