ECB headlines galore

More Mads Koefoed, 2 days ago08 December 2011 Non-Independent Investment Research While most analysts' expectation that the European Central Bank would lower its Main Refinancing Rate to 100bps from 125bps came true, ECB President Mario Draghi's press conference also offers a few easing measures.

Overview: Main Refinancing Rate cut to 100bps from 125bps. Unlimited funding for banks extended from 1 to 3 years Loosened collateral rules Reserve ratios cut to 1 percent from 2 percent ECB discontinues fine-tune refi operations National central banks can accept credit claims

Regarding the economy Draghi was downbeat as expected:

Growth will recover gradually next year Growth revisions reflect debt crisis uncertainty with GDP expected at -0.4 to 1 percent in 2012 and 0.4 to 2.2 percent in 2013. Inflation seen at 1.5 to 2.5 percent next year and 0.8 to 2.2 percent in 2013.

Furthermore Draghi said that his comments last week were not a signal of more bond purchases and that he was surprised by such an interpretation of his statements.

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