We said not to expect fireworks from the ECB, and at least when it comes to the press release, this has been the case, because moments ago the European Central Bank announced no changes to either any of its three rates, or the statement itself which was a repeat of last month.
The 3 key statements remain unchanged:
- Main refinancing operations: 0.00%
- Marginal lending facility: 0.25%
- Deposit facility: -0.40%
Additionally, as disclosed last month, the ECB said that the net asset purchases, at the current monthly pace of €30 billion, will run until the end of September 2018, “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.” As for the reinvestment of principal payments from maturing securities, these will continue “for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary”
Full statement below:
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.
Regarding non-standard monetary policy measures, the Governing Council confirms that the net asset purchases, at the current monthly pace of €30 billion, are intended to run until the end of September 2018, 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 Eurosystem will reinvest the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. This will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
