ECB (European Central Bank) Did Not Change The Interest Rate

ECB (European Central Bank) did not change the interest rate. No changes were made in the pandemic bond purchase program.

The European Central Bank (ECB) has decided to keep the interest rates constant. According to the decision, the rate of overnight deposits - 0.500%; policy interest 0.00%; the overnight lending rate was also kept constant at 0.25%. The ECB kept the pandemic bond purchase program at 1.85 trillion Euros. It was stated in the text that the program will continue at least until March 2022. On the other hand, evaluations regarding the debates on the bond purchasing speed in the European finance public opinion were shared. The text released by the ECB said, "We expect asset purchases within the framework of the PEPP next quarter to occur at a significantly higher pace than the first part of the year." Stating that asset purchases will be made flexibly according to market conditions and within the framework of a view to prevent tightening in financing conditions, the ECB decided to continue monthly net purchases as long as it is necessary to strengthen the supportive effect of the interest policy. In the text of the decision, "Within the framework of the Asset Purchase Program, monthly net purchases will be terminated shortly before the interest rates start to increase." In addition, the ECB stated that it will continue to provide “plenty of liquidity” to the refinancing operation. Regarding the inflation target, ECB said, "The Governing Council is ready to use all its instruments appropriately in line with the inflation target."       This article has contributions of Bloomberg HT.