Previous Close | 1.0877 |
Open | 1.0877 |
Bid | 1.0877 |
Day's Range | 1.0870 - 1.0878 |
52 Week Range | 1.0450 - 1.1276 |
Ask | 1.0871 |
In order to be able to sell their bond portfolios, central banks are having to rethink the way they set interest rates. Today, the European Central Bank unveiled its approach. For many years now, rates across most developed economies have been determined by the return that central banks offer on excess money deposited in their facilities.
After quite a lot of readjustment, investors’ views about the path of rate cuts at the European Central Bank finally appear closer to the mark. The ECB [left interest rates unchanged](https://www.wsj.com/economy/central-banking/ecb-rate-decision-march-2024-9c42b49b) at its monthly meeting today, which was widely expected. The implied probability of a rate cut in December [did increase today](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-03-07-2024/card/european-bonds-rally-on-lower-ecb-inflation-forecasts-9w0toZY5VVPhy41RnlzA), after the ECB downgraded its projections for growth and inflation in 2024, but pricing still suggests that rates won’t go lower than 3% this year.
Further upside for Greece’s credit rating hinges on robust nominal growth, deeper fiscal consolidation, more reform of the banks and structural reform compensating for years of public and private under-investment.