Even with the high inflation rate, the European Central Bank (ECB) maintained its monetary policy unchanged on Thursday (28th), which was in line with expectations. The euro exchange rate rose after a short-term rise and then fell.
ECB kept the main refinancing rate, marginal lending rate, and deposit rate unchanged at 0%, 0.25%, and -0.5%, respectively, and reiterated its continued implementation of the bond purchase plan.
The central bank statement stated that net purchases of the Asset Purchase Plan (APP) will continue at a rate of US$20 billion per month, while continuing to implement the emergency debt purchase plan (PEPP) with a total scale of 1.85 trillion euros, at least until the end of March next year, or The central bank judges that the epidemic crisis is lifted.
The Central Bank Board of Governors stated that compared to Q2 and Q3 this year, the pace of net asset purchases under PEPP could be “moderately slowed down” to maintain favorable financing conditions.
After the interest rate decision is announced, the market will follow the ECB President Christine Lagarde’s talk at the press conference.
(Continuous update…)
