•European Central Bank (ECB) holds interest rates at 0.0 percent.
•The central bank says it stands poised to increase its asset bond buying program if needed.
•As anticipated, the bank provided no clarity on when it may wind-down its stimulus program.
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 expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.
– Draghi says FX rate not a target; says exchange rate important for growth, inflation
– Draghi says ECB didn’t discuss sequencing
– Draghi says Bottom line is interest rates will remain at present levels for extended period of time and well past horizon of net asset purchases
Regarding non-standard monetary policy measures, the Governing Council confirms that the net asset purchases, at the current monthly pace of €60 billion, are intended to run until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. The net purchases are made alongside reinvestments of the principal payments from maturing securities purchased under the asset purchase programme. If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
Source: European Central Bank – http://www.ecb.europa.eu/press/pr/date/2017/html/ecb.mp170907.en.html