The European Central Bank held its monthly meeting just a while ago. They were expected to keep rates unchanged and they did. The ECB held its interest rates on hold as expected at 0.0%, deposit rates at -0.50% and the marginal lending facility 0.25%.

So, no change there, but the statement looked pretty dovish. The statement says that rates are to remain at present or lower levels until inflation outlook robustly converges to a level sufficiently close to, but below, 2%. Well, it’s going to be a looong time until then, which should keep the Euro bearish.

Bond buying to continue until shortly before rates are raised, so this is going to take really long too. The ECB expects the QE programme to run for as long as necessary to reinforce accommodative impact of rates. The Euro didn’t mind much, but these comments should keep the Euro down in the long term.