10/28, 1:46 PM (Source: TeleTrader)
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ECB leaves interest rates unchanged

The European Central Bank (ECB) stated on Thursday that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. It also reaffirmed its decision to continue purchases under PEPP until at least the end of March 2022 and "until it judges that the coronavirus crisis phase is over," although at a "moderately lower pace."

The ECB said it intends not to raise interest rates until it sees inflation reaching 2% "well ahead of the end of its projection horizon and durably for the rest of the projection horizon," while conceding there could be a "transitory period in which inflation is moderately above target." The bank's Governing Council also intends to continue reinvesting the principal payments from maturing securities purchased under the asset purchase program "for an extended period of time past the date" when it starts raising interest rates and "for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation."

Breaking the News / DJ