- European Central Bank
In line with expectations, the European Central Bank held its interest rates unchanged at all-time low levels, with benchmark lending rate remaining at 0.05% and deposit rate staying at negative 0.2%. ECB Governor Mario Draghi said that unhealthy high unemployment rate in the region as well as geopolitical tensions will weigh on the Euro zone's recovery and investment. Draghi also noted that growth momentum has weakened since summer, resulting in a downward revision of GDP estimates until 2016. Thus, the Governor said the central bank is making "timely preparation" for further monetary stimulus within ECB's mandate in case inflation falls further. Inflation remains well-below the ECB's targeted level of close to 2.0%, coming in at 0.4% in October. Meanwhile, Former Fed Governor Ben Bernanke said that the ECB would find it difficult to implement aggressive US-style QE to support flagging Euro bloc's economy, due to political and legal barriers.
Streak of disappointing news from Germany, the Euro zone's flagman, seems never-ending. German industrial orders inched higher just 0.8% in September, well below economists' expectations for a 2.2% gain. On the other hand, the reading swung back into the positive territory after a 4.2% decline in August from a previously reported drop of 5.7%. Bookings from abroad soared 3.7% in September while domestic orders fell 2.8%.
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