ECB decided rates remained unchanged, open to lower levels in coming months

JAKARTA (TheInsiderStories) - Governing Council of the European Central Bank (ECB) decided that 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 -0.40% respectively.

The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.

“Rates expected to stay at present or lower levels for an extended period of time, well past horizon of asset purchases,” President of ECB Mario Draghi said in press statement.

Regarding non-standard monetary policy measures, the Governing Council confirms that the monthly asset purchases of €80 billion are intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.

Draghi added, Euro are continues to show resilience to adverse effects of global economy and political uncertainty. ECB, He continues, remain committed to preserving the very substantial degree of monetary accommodation.

“We will continue to act if warranted by using all instruments available within our mandate,” He stated.

Inflation, Draghi explained, likely to pick up in next months, mostly due to base effects and there is no signs yet of convicing uptrend in underlying inflation. At the end, He urged, the implementation of structural reforms need to be substantially stepped up in all euro area countries.