ECB Hold Rates; Open to Further Stimulus

The European Central Bank kept rates on hold during Mr. Draghi’s final meeting on October 24th with the main refinancing rate remaining at 0 and the deposit rate at -0.5 percent. The bank said it expects key interest rates to remain at their present or lower levels until inflation moves towards close to, but below, 2% within its projection horizon.
ECB | Stefanie Moya | stefanie.moya@tradingeconomics.com 10/24/2019 11:56:52 AM
Excerpts from the ECB introductory statement:

At today’s meeting the Governing Council of the European Central Bank (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 -0.50% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.

As decided at the last Governing Council meeting in September, net purchases will be restarted under the Governing Council’s asset purchase programme (APP) at a monthly pace of €20 billion as from 1 November. The Governing Council expects them to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.

The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.

ECB Hold Rates; Open to Further Stimulus