ECB interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged.
ECB interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged.
The European Central Bank announces its monetary policy decision for April 2019
The Governing Council of the European Central Bank decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. 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
- Main refinancing rate 0.00%
- Marginal lending facility 0.25%
- Deposit facility -0.40%
- To keep rates unchanged at least through end of 2019
- In any case for as long as necessary to ensure sustained convergence of inflation to central bank’s target
No reference to last month terms of TLTRO being changed. (Targeted Longer-Term Refinancing Operations) is best described as a long term loan to banks to increase loan creation. The banks lend above a specified benchmark and borrow from the ECB at a negative rate. This will provide an incentive for the banks to lend and thus increase private spending in the economy. That’s the theory clearly has not been a great success so far.
Full statement by the ECB:
Changes via RANsquawk @RANsquawk
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.”
The statement of President Draghi ahead
ECB President Mario Draghi and Vice-President Vítor Constâncio explain the Governing Council’s monetary policy decisions and answer questions from journalists at today’s press conference.
Webcast – 14:30 CET
Alternate player (audio: en,fr,de) Watch on Twitter @ECB
Live. https://www.ecb.europa.eu/home/html/index.en.html
Source: Euopean Central Bank