ECB Cuts Deposit Facility to -0.50% | US CPI Increases
Published September 12, 2019
Today’s meeting of the Governing Council of the ECB saw major shifts towards loosening monetary policy conditions. The interest rate on the deposit facility was decreased by 10 basis points to -0.50%, while the interest rate on main refinancing operations and on the marginal lending facility remained unchanged. Current levels are 0.00% and 0.25%, respectively.
Canadian new housing prices were down 0.1% nationally, for the third consecutive month in July. Edmonton reported the largest price decrease in July, with builders offering promotions and cash rebates to stimulate sales. Canada Mortgage and Housing Corporation reported that single-family home starts in Edmonton were down 25.2% year-to-date in July compared with the same period in 2018.
The US Consumer Price Index for All Urban Consumers increased 0.1% in August, on a seasonally adjusted basis, after rising 0.3% in July. Over the last 12 months, the “all items” index increased 1.7% before seasonal adjustment.
OPEC faces a growing surplus in the oil market next year that will push prices lower, the International Energy Agency stated on Thursday. The IEA monthly report went on to indicate that, while the oil market will face a small deficit in the second half of this year, supplies are expected to surge later in 2019 and into 2020.