As widely expected from the formulaic statement issued by the ECB ahead of Draghi’s press conference, the central bank announced moments ago that it kept all three of its interest rates unchanged as follows:
- ECB keeps main refinancing rate unchanged at 0.00%.
- Leaves deposit facility rate unchanged at -0.40%
- Keeps marginal lending rate unchanged at 0.25%
The ECB’s full statement also confirms that “the monthly asset purchases of €80 billion are intended to run until the end of March 2017 or beyond if necessary and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim”
At today’s meeting the Governing Council of the ECB decided 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 -0.40% respectively. The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.
Regarding non-standard monetary policy measures, the Governing Council confirms that the monthly asset purchases of €80 billion are intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
Now attention turns to Draghi in 45 minutes where his press conference is expected to give some additional color on how the central bank will address the issue of rapidly disappearing collateral.
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