The European Central Bank on Thursday kept the main refinancing rate unchanged at 0.00%, according to press release. Interest rates on marginal lending and deposit facilities were maintained at 0.25% and -0.50%, respectively.
- ECB plans to keep the rates at present low levels until an inflation outlook fall to or below 2%
- ECB’s move happens amid rising inflation, with the Governing Council projecting further “temporary” uptick in prices this year.
- Investors were kept guessing how long the central bank will maintain the accommodative monetary policy in the wake of high inflation.
ECB has committed to purchase 1.85 trillion euros or $2.2 trillion of bonds up to March next year. EURUSD reacts to news, -0.23%, DAX is up +0.10%