ECB maintains all monetary policy unchanged
After the interest rate meeting, the European Central Bank maintained all monetary policies unchanged as expected. In his statement, European Central Bank President Lagarde pointed out that due to the epidemic and the bans in different countries; the pace of economic recovery in the region is still quite unstable. However, if compared with the interest rate meeting in July, the figures show that the economy has indeed improved today. The European Central Bank now estimates that the region’s economy will contract by 8% this year, which is obviously an improvement from the 8.7% contraction estimated at the time in July. As for the exchange rate issue that the market is most concerned about, Lagarde pointed out that it had discussed at the meeting and said that it would closely monitor the impact of exchange rate changes on inflation (a strong euro can suppress import prices, thereby depressing inflation), but pointed out that the European Central Bank does not There will be policies specifically for exchange rate changes. In this regard, the market believes that Lagarde’s remarks on the exchange rate issue are relatively moderate.
If the UK does not leave the EU without an agreement, the UK does not need to implement the agreement reached with the EU
Regarding the legislation of the British Parliament, once the UK leaves the European Union without an agreement, the UK will no longer need to implement the agreement reached with the EU in January this year. The EU is planning to take legal action against the UK, but any legal action is actually To no avail, because it is also difficult to get a ruling before Brexit at the end of this year. After last night’s negotiations between the EU and British officials, the EU strongly condemned the relevant British practices and asked the UK to abolish the relevant provisions, but the British rejected it. The EU stated that it is making all preparations for the UK to leave the EU without a deal. In view of the deepening of the market’s concerns about Brexit without a deal, the pound exchange rate has been significantly under pressure.
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