ECB kept monetary policy unchanged

A meeting of the Board of Governors of the European Central Bank (ECB) took place today, following which monetary policy remained unchanged. The base interest rate on loans was kept at zero.

The rate on deposits also remained at the same level – minus 0.5%, the rate on short-term loans from the ECB – at 0.25%. The regulator expects key interest rates to remain at or below current levels until the inflation forecast steadily approaches below 2%.

In addition, the central bank will continue the bond buyback program (PEPP) in connection with the pandemic totaling € 1.85 trillion. The reinvestment of the main payments on the securities purchased under the PEPP is planned to continue until at least the end of 2023.

The regulator will also continue the program of asset repurchase (APP) in the amount of € 20 billion monthly, as well as reinvestment of payments on securities purchased under this program. The next meeting of the European Central Bank will be held on April 22.