The ECB Launches a New Series of Refinancing Operations

Posted Thursday, April 30, 2020 by
Skerdian Meta • 1 min read

The European Central Bank kept the interest rates unchanged today, with deposit rates at -0.50% and refinancing rates at 0.00%. They insisted to keep the PEPP programme going as it is, while announcing a new series of refinancing operations.

This means that more money will be flooding European markets, which is good for stocks but not so good fo the Euro, although the Euro remained mostly unfazed, with EUR/USD turning slightly lower. Below are the actions from the ECB in today’s meeting:

  • ECB leaves key rates unchanged, no change to PEPP size of €750 billion
  • Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
  • QE purchases to continue at monthly pace of €20 billion, together with purchases under additional €120 billion temporary envelope
  • Fully prepared to increase size of PEPP and adjust its composition, by as much as necessary and for as long as needed
  • Will conduct asset purchases under PEPP until it judges that coronavirus crisis phase is over, but in any case until the end of the year
  • Expects interest rates to remain at present or lower levels until it has seen inflation outlook robustly converge to a level sufficiently close to, but below 2%
  • Announces new series of pandemic LTROs, i.e. refinancing operations for banks
  • TLTRO conditions further eased
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