ECB and BoE Leave Rates Unchanged

The Bank of England's Mervyn King and the ECB's Jean-Claude Trichet.

There were no rate changes or surprises from European central banks on June 4. The Bank of England refrained from extending the funds for its asset purchase program, while the European Central Bank (ECB) only added details to its plan to buy £60 billion ($85 billion) of covered bonds. ECB President Jean-Claude Trichet was adamant that this was not "quantitative easing," but "enhanced credit support," and also repeated again that current rates are appropriate. This supports our view that rates have troughed.

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