ECB to lower rates and restart bond buying

The European Central Bank ECB announced today that it has lowered the key interest rate to negative 0,50 % and that the central bank will restart the bond buying program.

– The interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively, the central bank said in the press release.

– Net purchases will be restarted under the Governing Council’s asset purchase programme (APP) at a monthly pace of €20 billion as from 1 November, the bank continued.

The main messages stated again that the ECB will keep the interest rates at their present or lower levels until it has seen the inflation outlook to be nearing the 2 % target. The asset programme is expected to continue as long as necessary.

 

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