Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

ECB holds interest rates at record-low; markets await Draghi

Published 07/21/2016, 07:46 AM
Updated 07/21/2016, 07:46 AM
ECB keeps rates unchanged, avoids new policy measures

Investing.com – As markets expected, the European Central Bank (ECB) made no changes to its record-low interest rates and announced no new measures on Thursday in what was its first policy decision since the U.K. decided to leave the European Union.

The ECB left its benchmark interest rate unchanged at a record-low 0.0%, in line with forecasts.

The central bank also held its deposit facility rate steady at -0.4% and its marginal lending rate remained at 0.25%.

The Governing Council noted in the press release that it continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.

Additionally, the ECB also kept the size of its monthly quantitative easing program at approximately €80 billion.

The euro zone monetary authority repeated that those monthly asset purchases are "intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim."

After the decision, traders looked ahead to ECB president Mario Draghi’s press conference at 13:30GMT, or 8:30AM ET.

Market participants will pay close attention to any hints of action to be taken at the September meeting when ECB presents its updated economic forecasts.

EUR/USD was trading at 1.1019 from around 1.1016 ahead of the announcement, while EUR/GBP was at 0.8361 from 0.8360 earlier.

Meanwhile, European stock markets were mostly lower. The benchmark Euro Stoxx 50 fell 0.15%, France's CAC 40 lost 0.29%, Germany's DAX slipped 0.02%, while London’s FTSE 100 shed 0.40%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Expected
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.