The European Central Bank took the decision to leave utility levels unchanged on Thursday. During the same period, investors took the stand to scrutinize cues for further action on increasing bill yields.
Bill yields in the European Zone have been increasing since February in line with growth in the United States although the increase in bill yields in the U.S. was higher after the announcement of a large fiscal plan.
There are concerns that the increase in yield could aid the economic recovery in Europe by increasing the cost of borrowing. In fact, it will also give a bad impression to countries that are struggling with the pandemic crisis.
The ECB also decided on Thursday to perpetuate its Pandemic Anxiety Purchasing Program or PEPP at its current stage. This scheme was introduced in Mac 2020 to overcome the impact of the Covid-19 outbreak. The analyst is of the view that there is a possibility that the ECB will increase its bill buying at the next rate.
Last December, the ECB issued a forecast outlook that KDNK in the European zone will increase by 3.9% this year and 4.2% in 2022. The ECB is expected to issue a new budget today.
Matawang Euro is still steadfast even though it has decreased slightly from its high profile, which is as much as 0.20% at the exchange rate of 1.1951 at 9.10 p.m.
