ECB Keeps Interest Rates, Asset Purchases Unchanged
10 Setembro 2020 - 5:36AM
RTTF2
The European Central Bank on Thursday left its key interest
rates and the size of asset purchases unchanged, as expected, and
reiterated that it stands ready to make adjustments to its tools
when needed.
The main refi rate was retained at a record low zero and the
deposit rate was kept at -0.50 percent, in line with economists'
expectations.
The lending rate was left unchanged at 0.25 percent.
"The Governing Council continues to stand ready to adjust all of
its instruments, as appropriate," the bank reiterated.
Confirming its forward guidance on interest rates, the ECB said
the Governing Council expects the key 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 size of the pandemic emergency purchase programme (PEPP) was
left unchanged at EUR 1,350 billion.
"These purchases contribute to easing the overall monetary
policy stance, thereby helping to offset the pandemic-related
downward shift in the projected path of inflation...," the central
bank said.
"This allows the Governing Council to effectively stave off
risks to the smooth transmission of monetary policy."
Asset purchases under the PEPP will continue until at least the
end of June 2021 or when the bank assess that the coronavirus
crisis is over, the ECB said.
The future roll-off of the PEPP portfolio will be managed to
avoid interference with the appropriate monetary policy stance, the
central bank added.
Further, the bank said the net purchases under the asset
purchase programme (APP) will continue at a monthly pace of EUR 20
billion, together with the purchases under the additional EUR 120
billion temporary envelope until the end of the year.
The Governing Council will also continue to provide ample
liquidity through its refinancing operations, the bank said.
ECB President Christine Lagarde is set to hold her post-decision
press conference at 08:30 AM ET, during which she is set to unveil
the latest set of ECB staff macroeconomic projections.
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