ECB leaves benchmark interest rate and QE unchanged

At its monetary policy meeting held today, the Governing Council of the European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.40% respectively. Attention now turns to the   ECB President Mario Draghi’s press conference at 12:30 GMT.

Key highlights from the official statement

• Will continue to make net purchases under the asset purchase programme (APP) at the current monthly pace of €30 billion until the end of September 2018.

• After September 2018, subject to incoming data confirming the Governing Council’s medium-term inflation outlook, the monthly pace of the net asset purchases will be reduced to €15 billion until the end of December 2018 and that net purchases will then end.

• The Governing Council intends to reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of the net asset purchases, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.

Key notes

ECB Meeting Preview: 7 Major Banks expectations from July meet.

Today, we have an all-important ECB meeting and as we get close to the decision timings, here are the expectations as forecasted by the economists and researchers of 7 major banks for the upcoming meet.

ECB: Draghi to probably dodge any questions on  timing  of next rate move  – BNPP.

Analysts at BNP Paribas (BNPP) offer a sneak peek at what to expect from today’s European Central Bank (ECB) monetary policy announcement that will be followed by President Draghi’s press conference at 1230 GMT.

About ECB’s press conference

Following the ECB ´s economic policy decision, the  ECBPresident gives a press conference regarding monetary policy. His comments may influence the  volatility  of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.