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6/6, 1:46 PM (Source: TeleTrader)
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ECB to hold rates at least through June 2020

Policymakers from the European Central Bank left the three leading interest rates unchanged on Thursday in a regular meeting in Vilnius. They went further to promise to keep them at record lows at least until the end of the first half of next year and "as long as necessary" to bring inflation back up to just under 2%. The previous forward guidance was for no move until the end of 2019.

Another dovish move came in an update about the upcoming TLTRO 3 program. The quarterly targeted longer-term refinancing operations will be provided at ten basis points above the average main refinancing rate over the life of the respective transaction, according to the statement. Counterparties surpassing a benchmark will be charged less, they said and revealed the rate can go as low as the "average interest on the deposit facility prevailing over the life of the operation plus 10 basis points."

ECB added it would continue to invest fully the proceeds from the quantitative easing scheme "for an extended time" after an eventual increase in borrowing costs and "as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation." The euro strengthened slightly upon the release.

Breaking the News / IT