Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

ECB Holds Rates Steady and Leaves Tapering Plans Unchanged

Published 12/14/2017, 07:45 AM
Updated 12/14/2017, 07:45 AM
© Reuters.  ECB holds interest rates steady; Draghi on tap

© Reuters. ECB holds interest rates steady; Draghi on tap

Investing.com – The European Central Bank acted as expected on Thursday by keeping interest rates unchanged.

Specifically, the ECB left its benchmark interest rate unchanged at 0.0%.

Furthermore, the central bank also coincided with forecasts by holding its deposit facility rate steady at -0.4% and leaving its marginal lending rate at 0.25%.

“The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.,” the statement repeated.

The ECB also reiterated that its plans to begin tapering its asset purchase program (APP) in January remain unchanged. Specifically, the ECB repeated that it will reduce monthly purchases from the current €60 billion ($71 billion) to €30 billion ($35.5 billion) and will extend those purchases to “the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim”.

In yet another repeat of the last decision, the statement confirmed that, "if the outlook becomes less favorable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the APP in terms of size and/or duration".

Traders now look ahead to ECB president Mario Draghi’s press conference at 8:30AM ET (13:30GMT) to see he will offer further clues on monetary policy for the euro zone in the coming year.

After the announcement and ahead of Draghi, EUR/USD was trading at 1.1831 from around 1.1832 ahead of the release, while EUR/GBP was unchanged at 0.8811.

Meanwhile, European stock markets traded mostly lower. The benchmark Euro Stoxx 50 fell 0.47%, France's CAC 40 lost 0.26%, Germany's DAX shed 0.68%, while London’s FTSE 100 traded down 0.24%.

Latest comments

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.