Forex Dictionary

Minimum Bid Rate

Minimum Bid Rate

Measures The 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 Monthly; FF Notes The rate shift is usually priced in the market and thus overshadowed by the ECB press conference held 45 minutes later. Acronyms European Central Bank (ECB); Also Called Refi Rate; 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 and the 15 governors of the Euro area central banks vote on where to set the rate. The split of votes is not publicly revealed;