European Central Bank Leaves Rates Unchanged

Frankfurt (April 10)  The European Central Bank left interest rates unchanged Wednesday and did not tinker any further with monetary policy after adding fresh stimulus measures last month.

The interest rate on the main refinancing operations and the rates on the marginal lending facility and deposit facility will remain at 0.00%, 0.25% and minus 0.40%, respectively.

“The Governing Council expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term,” said the ECB, repeating a phrase from the last meeting.

The ECB said the Governing Council intends to continue reinvesting principal payments from maturing securities purchased under its asset-purchase program for “an extended period of time past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation.”

Expectations had been for ECB officials to leave monetary policy alone after new measures were announced at the March meeting. Analysts said policymakers would want to take some time to evaluate the impact of their most recent stimulus.

In March, officials extended the length of time they expects rates to remain at current levels and announced new refinancing operations, all aimed at maintaining liquidity to boost the economy.

Reuters