ECB Leaves Interest Rates Unchanged
(Kitco News)- The European CentralBank left interest rates unchanged Thursday and continued to say it will endits monthly asset purchases at the end of the year.
The central bank’s GoverningCouncil left the interest rate on the main refinancing operations and theinterest rates on the marginal lending facility and the deposit facility at 0.00%,0.25% and minus 0.40%, respectively.
“The Governing Councilexpects the key ECB interest rates to remain at their present levels at leastthrough the summer of 2019, and in any case for as long as necessary to ensurethe continued sustained convergence of inflation to levels that are below, butclose to, 2% over the medium term,” the central bank said.
Meanwhile, officialssaid they would continue to make net purchases under the asset-purchase programat the previously announced new monthly pace of ?,?15 billion until the end ofDecember.
“The Governing Councilanticipates that, subject to incoming data confirming the medium-term inflationoutlook, net purchases will then end,” the ECB said.
The Governing Council saidit intends to reinvest the principal payments from maturing securities for anextended period of time after the end of the net asset purchases, at least foras long as “necessary to maintain favorable liquidity conditions and an ampledegree of monetary accommodation.”
ECB President MarioDraghi will hold a news conference later Thursday.
By Allen SykoraFor Kitco News
Follow @AllenSykora
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