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9/12, 1:46 PM (Source: TeleTrader)
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ECB cuts deposit facility rate by 10 bp to -0.50%

The European Central Bank said on Thursday that it cut the deposit facility rate by 10 basis points to -0.50% and left rates on the main refinancing operations and the marginal lending facility unchanged, at 0% and 0.25%, respectively.

A statement from the central bank noted that the Governing Council expects the key interest rates to remain unchanged or edge down until the inflation outlook converges to a level sufficiently close to, but below, 2%.

The asset purchase program (APP) will be restarted from November 1, at a monthly pace of €20 billion, "to reinforce the accommodative impact of its policy rates," the policymakers announced. Payments from maturing securities purchased under the APP will continue to be reinvested until the central bank raises interest rates, if necessary. "The modalities of the new series of quarterly targeted longer-term refinancing operations (TLTRO III) will be changed to preserve favorable bank lending conditions, ensure the smooth transmission of monetary policy and further support the accommodative stance of monetary policy," the statement added.

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