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A signal from the ECB that they will change monetary policy

European Central Bank

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The European Central Bank (ECB) has announced that it is suspending the purchase of its own bonds, but the monetary policy problem remains.

ECB Governing Council meetings in September and October are the last opportunities for President Mario Draghi's to influence monetary policy before the expiry of his mandate on October 31st. Governing Council Member of the Governing Council of the ECB specified that the guidelines should be interpreted as "by the end of September". Peter Praet, chief economist at the Central Bank, said the interest rate would be the main economic instrument in the future.

Economists at BNP Paribas said that these changes support their view that in September it is possible to raise the interest rate.
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ECB stay optimistic for Eurozone growth
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The ECB is considering changing its monetary policy by raising interest rates and reducing the QE program. Higher interest rates will lead to higher net interest income and lower economic value over the next three years.
If this is the case, we expect the euro to rise sharply, and the shares of European banks will get a strong bullish trend.
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EUR/USD - Bulls still in charge 


 



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