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BOE Keeps Interest Rate Unchanged in Aug.

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    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 5:01
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Good morning everyone -- way in the latest interest rate decision from the Bank of England right now the bank is expected to keep that rate.

And half of 1% ahead of that decision -- let's take a look.

At the markets we've seen -- hours across the board -- in the US and Europe you can see US futures.

Currently up by 72 points for the Dow and that rate decision came down unchanged at that the Bank of England.

Keeping its interest rate at half of 1%.

As expected.

We're also expecting the ECB today.

To unveil a new plan this morning to buy government debt in an effort to further.

Deal with the region's debt crisis meanwhile German Chancellor Angela Merkel meet with Spanish prime minister Mariano Rajoy.

In Madrid today and ahead of that meeting Spain had a successful bond sell it came in with lower yields.

Then previous auction stocks in -- you could see up across the board London's up by thirty to Paris is up by 32.

Frankfurt up.

-- about 88 now let's go get some more deep -- on that ECB meeting and it's expected bond buying program from Fox Business -- that she Webster was outside.

The ECB headquarters in Frankfurt Germany.

As C I -- this results still not definite yet but what's expected in terms of how this program would work if it does come down to that.

-- Well yes we are expecting at least -- ECB will do with regard to bond buying but essentially what the Central Bank would do it by bombs on the open market.

Maybe up to short term debt is what we're talking about Diane maybe up to three year notes.

And -- purpose of that being to drive up the price and in turn drive down the yield.

That's -- interest rate the countries have to pay to borrow money.

Earlier in the summer -- -- we saw those rates skyrocket for -- Spain and Italy Spanish ten year notes getting as high as seven and a half percent that is just not sustainable they have since dropped to around six and a half percent.

Essentially on anticipation that the ECB will indeed intervene in the bond market even -- six and a half percent.

That is very high -- before that we'll also get an interest rate decision from the European Central Bank.

Probably about 45 minutes before we get any details of any bond buying program.

-- we're expecting the ECB perhaps to keep the interest rate at three quarters of a percent although they could indeed cut that rate to half a percent but -- really two separate issues the interest rate.

Would deal with the growth and economic problems within the Euro -- -- as the bond buying program deals directly with the -- costs of both countries such as Spain and it's -- but there's certainly the economy the Arizona.

A huge probably just got the latest numbers from Greece where the unemployment rate.

At the end of June stood at 24 point 4% -- extremely high.

But we're also seeing as you mentioned the OECD.

Really are ramping down expectations of economic growth both in the eurozone and in the US and there is no doubt that -- -- prices here in the eurozone.

Is a huge drag on the global economy -- also to pressure on Mario Draghi the ECB president you mentioned that.

Angela Merkel will be meeting with Mariano Rajoy.

At the same time as ECB's meeting in fact they have a press conference scheduled for exactly the same time which is 8:30 AM eastern time.

It's -- -- to see whether there's any sort of coordinated announcement but we are now.

Well probably about an hour half way from getting more those details on any bomb buying program by the EC vehicles will be here to bring all those details Diane back to you.

We are very grateful for that Ashley Webster live from Frankfurt -- specially.

Let's take a closer look now at what's moving those European markets all those factors that Ashley just touched on look at some analysis now from BGC partners.

-- Ingram over in London Mike.

Impressive -- at this rate decision from the Bank of England half of 1% for more than three years now what's your reaction to.

Well as you said earlier I think was very much expect cities in -- referring back to the young always -- all of the Bank of England.

They seem to be very very cautious and any further cuts.

To the to the main interest rates -- -- the -- board backs.

You know they they impact -- building societies in the UK much in the same way that's you know the Federal Reserve's board about the impact on the money market at a cutting on interest rates further in the in the US.

-- they're more likely to go down that are in the further QB route if they don't see any further pick up.

India UK economy I think -- -- -- waits to see whether this funding for lending scheme has any traction in the in the real economy and that's what we were looking November I think before any action from the of the -- And I that's my -- from BGC partners in London thanks Mike.

-- -- a quick look at commodities oil and gold are up just like the market dials up by little more than a dollar right now gold is up by seventeen.

Imus in the morning continues right now on Fox Business giving you the -- across.

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