European Central Bank Did Not Change Interest Rate

European Central Bank Did Not Change Interest Rate The European Central Bank did not change the interest rate. The European Central Bank (ECB) kept the policy rate at zero. The European Central Bank (ECB) announced that it decided not to change the interest rates at the Governing Council meeting held today. Accordingly, the policy rate was kept constant at zero, deposit rate at minus 0.50 percent and marginal funding rate at 0.25 percent. In the bank's statement, it was stated that the size of the PEPP, which was launched with 750 billion euros in March due to the pandemic, and increased by 600 billion euros in June to 1 trillion 350 billion euros, was not changed. In addition, the statement emphasized that the bank is ready to make changes in all instruments when necessary. In the statement, which stated that the purchases in the PEPP will continue flexibly until the end of June 2021, it was stated that the main currencies in PEPP will continue to be reinvested at least until the end of 2022. It was announced that asset purchase programs will continue at the level of 20 billion euros per month, and the bank will continue to provide ample liquidity through refinancing operations. Reminding that there are downside risks in the current situation, the statement included the following statements: “The Governing Council will carefully consider the information coming in, including the dynamics of the epidemic, the introduction of vaccines, and developments in the exchange rate.” In the statement, it was stated that the economic outlook and risk balance will be examined in detail after the macro-economic study they will carry out in December and the appropriate instruments will be re-weighed.