The ECB interest rate decision has just been announced.
The bank deposit rate remains unchanged at -0.50%.
The ECB key interest rate (refinancing rate) remains unchanged at 0.00%.
The margin lending facility also remains unchanged at 0.25%.
At 2:30 pm the second PC follows with Christine Lagarde as ECB head. We will then report immediately on all current statements.
The ECB needed 7 minutes to put the statement online after apparently technical problems. Here it is:
The Governing Council expects the key ECB interest rates to remain at their current level or at a lower level. Until the Governing Council finds that inflation prospects over its projection horizon are converging significantly towards levels sufficiently close to, but below, 2% and that this convergence is reflected in the dynamics of underlying inflation across the board.
The Governing Council will continue net purchases under its €20 billion monthly Asset Purchase Programme (APP). It expects them to continue for as long as necessary. The Governing Council expects them to be terminated shortly before it starts to raise the key ECB interest rates.
The Governing Council intends to continue to fully reinvest the redemption amounts. Those of the bonds and securities purchased under the APP at maturity for an extended period beyond the date on which it starts to raise key ECB interest rates. And in any event for as long as necessary to maintain favourable liquidity conditions and extensive monetary policy accommodation.
In addition, the Governing Council decided to start a review of the ECB’s monetary policy strategy. Further information on the scope and timing of this review will be announced in a press release today at 3.30 p.m.