European Central Bank Keeps Rates Unchanged

The ECB was not expected to change any of its three main refinancing rates in today's announcement and it did not disappoint, keeping the Main Refinancing Rate unchanged at 0.0%, and its marginal lending and deposit facility rates at 0.25% and -.40% respectively.

In a statement that was a carbon copy replica of the September 8 release, the ECB also added that "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." Draghi also noted that QE would remain at "€80BN until March 2017 or longer if necessary."

Full press release:

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.

x

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.