The European Central Bank (ECB) at its next meeting did not change the major tools of its monetary policy, the message of the regulator. The base interest rate remained at 0%, the Deposit rate remained at minus 0.4%, while the margin rate is at 0.25%.
Remained unchanged and the program of “quantitative easing” (QE) by buying up the debt Adjuster bonds with an investment grade rating. At the previous meeting on March 10, the volume of monthly redemption of securities was increased from €60 billion to €80 billion At this time the leadership of the ECB decided to stick with the specified part of ourselves: “Given the extraordinary monetary policy we have expanded our program of asset purchases up to €80 billion Now the main task is to conduct approved on March 10, more solutions”.
Previously surveyed by Bloomberg and the Financial Times financial analysts speculated that the ECB really will leave all key rates unchanged. BNP Paribas analyst Ken Wattret, according to the FT, in the client newsletter drew attention to the words about the implementation of previous decisions. “In other words, don’t expect any additional action from the regulator ever in the near future, the emphasis is on the incarnation of the already taken decisions”, — said Wattret.
“The ECB President Mario Draghi now we need to broadcast the idea that the regulator has already answered the supplementary measures on the economic slowdown, but now it will take time for these measures to work, and to understand their effectiveness,” said Bloomberg, Nomura International analyst Nick Matthews.
At the previous meeting in early March the Central Bank lowered its main indices on the background of deflationary risks in the Eurozone economies. The January inflation in the region was 0.3% against the target of 2%. Immediately after the ECB decision today the Euro rose from $1.13 to almost $1.14 per Euro.