ECB Deposit Rate Decision
On Wednesday, the ECB will announce its deposit rate decision. The deposit rate is the interest rate paid on the surplus liquidity that credit institutions may deposit overnight in an account with a national central bank that is part of the Eurosystem. This rate is expected to remain stable, but worries have arisen as economic growth is slowing sharply with yet no signs of a rebound
The slowdown, exacerbated by Brexit uncertainty, could also expose the vulnerability of the ECB as it has exhausted much of its firepower and its few remaining tools are mostly untested and lack potency in tackling economic weakness.
On April 12, the deadline for the UK parliament to decide if the country goes through with the Brexit deal will be reached. Theresa May is expected to try to postpone the deadline again, since cross-party deals, particularly with the Labour Party, have failed to materialize.
The UK Prime Minister is still confident on the process to go through and, in order to pressure the parliament, stated that ‘the longer this takes, the greater the risk of the UK never leaving at all and it is essential we deliver what people voted for’.
Next Wednesday, Bank of Japan Governor Haruhiko Kuroda will hold a press conference about monetary policies in Tokyo. Mr Kuroda exercises general control over the Bank's business. He is in charge of the Internal Auditors' Office.
On April 10, the FOMC (The Federal Open Market Committee) will release the minutes from a meeting. These minutes are released by the Board of Governors of the Federal Reserve and correspond to a very important guidance regarding the future US monetary policy.