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4/22, 1:47 PM (Source: TeleTrader)
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ECB keeps interest rates unchanged

The European Central Bank (ECB) decided on Thursday to keep the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50% respectively. The Governing Council expects the rates to stay at these levels or lower until the inflation outlook reaches "a level sufficiently close to, but below, 2% within its projection horizon."

The bank stated it will continue to conduct net asset purchases under the pandemic emergency purchase program (PEPP) with a total envelope of €1,850 billion until at least the end of March 2022 or until it judges that the coronavirus crisis phase is over. It projects that purchases in the current quarter will be conducted "at a significantly higher pace than during the first months of the year." Net purchases under the asset purchase program (APP) will continue at a monthly pace of €20 billion, the ECB added, "for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates." The bank reaffirmed its readiness to "adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry."

Breaking the News / DJ