ECB Leaves Key Rates Unchanged

the Governing Council of the European Central Bank (ECB) decided to leave the interest rates on its main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively.

The European Central Bank boosted its massive stimulus program in December to support the economic recovery in the bloc.

The PEPP asset purchase program has been extended through March 2022, with a total of 1.85 trillion euros ($ 2.25 trillion) in bond purchases. This allows eurozone governments to get cheaper rates when borrowing from public markets.

“ECB expects the key rates to remain at their present or lower levels until inflation outlook robustly converge to a level sufficiently close to, but below, 2%.”

“ECB will continue the purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of €1.85 trillion.”