The European Central Bank (ECB) left its policy mix unchanged today, giving the bank more time to assess the impact of its latest burst of stimulus on the faltering eurozone economy.
In a statement Wednesday, the ECB reiterated that it doesn’t “expect to increase its key short-term interest rate, currently set at -0.4%, before next year.” It also pledged “to continue reinvesting maturing bonds” from its giant bond-buying program “for an extended period of time” after it starts to raise rates.
Press conference comments
ECB Stands Ready to Adjust All Instruments, If Needed
Details on New LTROs Will be Communicated in One of Next Meetings
Incoming Data Confirm Slower Growth Momentum
Some of the Special Factors Dampening Growth Appear to Be Fading
Geopolitical Risks, Protectionist Threats Weighing on Econ Sentiment
Ample Degree of Monetary Stimulus Still Needed
Significant Monetary Policy Stimulus Provided by Forward Guidance
Incoming Data Still Weak, Particularly in Manufacturing
Weaker Econ Data Reflect Slowdown in External Demand, Country-Specific Factors
Slower Growth Momentum Extending Into Current Year
Favorable Financing Conditions, Rising Wages to Support Econ Activity
Risks to Eurozone Growth Outlook Still Tilted to Downside
Headline Inflation Likely to Decline Over Coming Months
Measures of Underlying Inflation Remain Generally Muted
Labor Cost Pressures Have Strengthened, Broadened
New TLTROs Will Help Ensure Favorable Lending Conditions Going Forward
Bank Lending Survey Shows Overall Lending Conditions Still Favorable
Growth of Loans to Businesses Has Moderated in Recent Months
Underlying Inflation Expected to Rise Over Medium-Term
Urges Decisive Steps to Complete Banking Union, Capital Mkts Union
Will Need to See How Econ Will Turn Out to Decide on New TLTRO Terms
Inflation Expectations Have Deteriorated Mainly Because of Negative Risk Premium
We Have Shown That We Have “Plenty of Instruments”
We Remain Fully Committed to Return Inflation to Target
