European Central Bank Keeps Key Rate Unchanged at Record 0%
The European Central Bank (ECB) said on Thursday that its governing council decided to keep the key rate unchanged at record zero percent
MOSCOW (Pakistan Point News / Sputnik - 21st January, 2021) The European Central Bank (ECB) said on Thursday that its governing council decided to keep the key rate unchanged at record zero percent.
The key rate has been at this level since March 2016.
"First, 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 bank said in a press release.
The ECB governing council expects key rates to remain at the present or lower levels until inflation nears 2 percent within the projection horizon, the bank added.
"Second, the Governing Council will continue the purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of 1,850 billion [$2.25 billion]. The Governing Council will conduct net asset purchases under the PEPP until at least the end of March 2022," the press release added.
The bank also plans to further reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2023.
In addition, the bank expressed its readiness to adjust all of its instruments to ensure that inflation steadily moves towards its aim.