The European Central Bank has left interest rates and its quantitative easing programme unchanged at its governing council meeting on Thursday. The decision came against a backdrop of inflation reaching the bank’s goal of just under 2 per cent for the first time since early 2013.
Mario Draghi, ECB president, who was under pressure from the council’s hawks, stepped back from the prospect of more rate cuts.
- ECB main rate remains at 0.00%, deposit facility at -0.40%
- QE bond buying programme continues till at least end of 2017
- Monthly QE due to drop from €80bn to €60bn from April as previously announced
- ECB keeps long-term inflation forecasts unchanged
- Draghi says “no signs yet of a convincing upward trend in underlying inflation”
- Draghi takes more hawkish tone on monetary policy