The ECB Kept The Base Rate At 0%
The Governing Council of the European Central Bank (ECB) has kept the benchmark interest rate at zero, according to a press release. It has been at this level since March 2016. The Deposit rate remains at -0.5%, while the margin rate remains at 0.25%.
The regulator plans to keep all rates at the current or lower level until it sees inflation approaching 2% within the forecast period. The ECB also did not change the scope of the Pandemic Emergency Purchase program (PEPP). He remained at the level of 1,350 trillion euros.
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 -0.50% respectively. 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% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.