ECB Pledges to Keep Rates on Hold or Lower
Skerdian Meta • 1 min read
The European Central Bank held its meeting today and they released their statement a while ago. They kept interest rates unchanged, as expected.
- Deposit rate facility -0.50%
- Main refinancing rate 0.00%
- Marginal lending facility 0.25%
- Rates to remain at present or lower levels until inflation outlook robustly converges to target, reflected in underlying inflation
- Announces first strategic review of policy since 2003
- Further details on scope, timetable of review will be due later at 1430 GMT
- Bond buying to continue until shortly before rates are raised
So, they pledge to keep rates at these levels or even cut them further, based on how inflation will be going. Inflation seems to have stabilized for now, after declining for about a year. They will keep buying bonds until they hike rates, which will take a long time. Although, Germans are challenging that QE programme from the ECB in a German court, as we heard earlier today.