The European Central Bank on Thursday left its key interest rates, forward guidance, and stimulus measures unchanged as expected in the final policy session chaired by President Mario Draghi.
The main refinancing rate was retained at its record low 0 percent and the deposit rate at -0.50 percent after the latest Governing Council meeting. The latter was slashed by 10 basis points in September.
The marginal lending facility rate was kept unchanged at 0.25 percent.
The bank also retained its forward guidance on both interest rates and asset purchases. “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 percent within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics,” the bank said.
In September, the ECB announced a restart of its asset purchase programme at a monthly pace of EUR 20 billion from November 1. The bank reiterated this on Thursday. “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 ECB added.
Draghi is set to hold his final post-decision press conference at 8.30 am ET.
He is expected to face a barrage of questions from the press regarding the recent split in the Governing Council.
Former IMF Managing Director Christine Lagarde is set to replace him on November 1.
The material has been provided by InstaForex Company – www.instaforex.com