European Central Bank Keep Interest Rates Unchanged

The European Central Bank kept the interest rates constant. ECB did not change interest rates in line with market expectations.

The European Central Bank kept the interest rates unchanged. ECB has decided not to change the interest rates in line with the market expectations. The ECB announced its decision to keep the overnight deposit rate at -50%. The European Central Bank has decided not to change the policy rate to 0.00% and the overnight lending rate to 0.25%. The bank announced that the asset purchase program will continue at 20 billion Euros per month. The ECB also reported its outbreak asset purchase program at 1.85 trillion Euros. It was noted in the text of the decision that interest rates will be kept at the current or lower levels until the inflation target is reached. The European Central Bank was expected to keep the interest rates or asset purchases constant. The record deaths and tightening of restrictions seen in the number of daily cases in the Eurozone, especially in Germany, increased the uncertainty over its economic outlook. However, speaking last week, Lagarde stated that the bank's growth forecast is still valid. In its previous statements, the ECB thinks that the asset purchase program, which will end in March 2022, and the coronavirus epidemic asset purchase program, which is planned to be completed in the first three months of 2022, will continue the economic recovery despite the tightened restrictions.