The European Central Bank (ECB) kept the benchmark interest rates and the purchase program unchanged, as expected. The euro it was not significantly affected in the market. Now the focus shifts to Lagarde’s press conference and December meeting where there will be announcements, at least about the shopping program.
The ECB statement had little change from the previous one. In it, he affirmed that they continue to “consider that favorable financing conditions can be maintained with a rate of net asset purchases within the framework of the pandemic emergency purchase program (PEPP) slightly lower than in the second and third quarters of this year. anus.”
Main decisions:
“The interest rate on the main refinancing operations and the interest rates on the marginal credit facility and the deposit facility they will remain unchanged at 0.00%, 0.25% and -0.50%, respectively. “
“Wait for the ECB’s official interest rates remain at their current levels, or lower, until you notice that inflation is at 2% well before the end of its projection horizon and lastingly for the rest of that horizon, and consider that the progress made in core inflation is sufficiently advanced to be compatible with a stabilization of inflation at 2% in the medium term. This could also imply a transitional period in which inflation is moderately above target. “
“The net purchases under the APP they will continue at a monthly rate of € 20 billion. The Governing Council continues to expect that the monthly net purchases under the APP will continue for as long as necessary to reinforce the accommodative impact of its official rates and that they will end shortly before the official ECB interest rates begin to rise. “
“Plan to continue reinvesting fully the principal of the securities acquired under the APP that expire. “
“It will continue to carry out compras net assets under the PEPP with a total endowment of € 1,850 billion at least until the end of March 2022 and, in any case, until it considers that the coronavirus crisis phase is over. “
“To be continue reinvesting the principal of the securities acquired under the PEPP that mature at least until the end of 2023. “
“The Governing Council will continue to provide abundant liquidity through its financing operations. In particular, the third series of longer-term financing operations with a specific objective (TLTRO III) continues to be an attractive source of financing for credit institutions. ”
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