The European Central Bank (ECB) has dedicated this Thursday to keep all its interest rates, also the interest rate on bank deposits, although a reduction was expected after the increase in economic uncertainty. The ECB reported that it left the reference interest rates unchanged to those it lends to banks weekly at 0%, which will continue to lend them at a day at 0.25% (marginal credit facility) and that They will continue to charge 0.40% for the excess of one-day bookings (marginal deposit facility).
However, the new roadmap marked by the ECB specifies that interest rates will remain "at their current level or lower at least until the first half of 2020," as explained by the entity.
Also, the issuing institute «intends to continue reinvesting, in full, the principal payments of the debt due under the asset purchase program for a prolonged period of time until after interest rates start to rise, ”he added.
The ECB press release also indicates that a "more accommodating" stance is necessary for a prolonged period of time. "If the medium-term forecast continues to fall, the Governing Council is determined to act, in line with its objective of symmetry in the inflation target," reads the statement. Thus, the ECB stresses that "it is ready" to adjust all its instruments to ensure that inflation reaches the 2% target "in a sustainable way".
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