Source European Central Bank (latest release)
Measures Interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system;
Usual Effect Actual > Forecast = Good for currency;
Frequency Scheduled monthly;
Next Release May 8, 2014
FF Notes The rate decision is often priced in the market so it tends to be overshadowed by the ECB Press Conference held 45 minutes later;
Why Traders
Care Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future;
Derived Via The 6 members of the ECB Executive Board and the 18 governors of the Euro area central banks vote on where to set the rate. The split of votes is not publicly revealed;
Also Called Interest Rates, Refi Rate, Repo Rate;
Acro Expand European Central Bank (ECB);