JAKARTA (TheInsiderStories) - The Governing Council of the ECB on Thursday (Mar 9) has 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,” ECB said in a statement.
It said tegarding non-standard monetary policy measures, the Governing Council confirms that it will continue to make purchases under the asset purchase program (APP) at the current monthly pace of €80 billion until the end of March 2017.
From April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim, it said.
The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP, ECB added.
“If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration,” it added. (*)