BOE and ECB outcome

Hello all,

The BOE and ECB decided to keep interest rates at record lows as expected thereby making making little impact in the market. The BOE also decided to leave its ASSET PURCHASE FACILITY at 200B and during the ECB press conference its President (Jean-Claude Trichet) said interest rates in the 16-nation euro region are “appropriate,” indicating he sees no immediate need to cut borrowing costs any time soon.
The central bank expects the economy to expand around 1 percent this year compared with a previous forecast of around 0.8 percent. The economy will grow about 1.2 percent in 2011, lower than an earlier projection of around 1.5 percent because of weaker domestic demand, he said. So I think ECB will likely increase its rate second quarter of next year.