ECB begins talks about ending its QE program with ‘bulk of decisions’ expected in October.
The ERO moved above $1.2030 as the ECB kept rates unchanged.
At today’s meeting the Governing Council of the ECB 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.
Regarding non-standard monetary policy measures, the Governing Council confirms that the net asset purchases, at the current monthly pace of €60 billion, are intended to run until the end of December 2017, 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. The net purchases are made alongside reinvestments of the principal payments from maturing securities purchased under the asset purchase programme. If the outlook becomes less favourable, 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 programme in terms of size and/or duration.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
From the Q&A answers lifted from @LiveSquawk
ECB’s Draghi: Rates Seen At ‘Current Levels Well Past QE’
ECB’s Draghi: QE To Run At EUR60 Bln/Month Pace Through December At Least
QE To Run Until Sustained Pickup In Inflation Seen
ECB’s Draghi: M-Term Outlook Broadly Unchanged
Saw Higher Than Expected Acceleration In Econ. Growth In H1
ECB’s Draghi: Confident Inflation Will Head Towards Inflation Target
ECB’s Draghi: Underlying Inflation Rose But Remains Subdued
Still Need Very Substantial Degree Of Stimulus
ECB’s Draghi: Autumn To Decide On Calibration Of Policy Beyond 2017
ECB’s Draghi: Ready To Increase Size, Or Duration Of QE If Necessary
ECB’s Draghi: 2017 Economic Growth Seen At 2.2% (Fastest Since 2007) From 1.9%
ECB’s Draghi: 2018 Economic Growth Forecast Unchanged At 1.8%
2019 Economic Growth Forecast Unchanged At 1.7%
ECB’s Draghi: 2017 Inflation Forecast Unchanged At 1.5%
2018 Inflation Seen At 1.2% From 1.3%
2019 Inflation Seen At 1.5% From 1.6%
ECB’s Draghi: Growth Risks Are Broadly Balanced -Sees Decline In Headline Inflation Towards End-2017
ECB’s Draghi: Decline In Inflation Forecasts To Reflect Base Effect, Energy Prices
ECB’s Draghi: Yet To See Convincing Pick Up In Underlying Inflation
FX Appreciation Caused Cut In Inflation Projection
ECB’s Draghi: Urges For ‘More Decisive’ Contribution From Other Policy Actors
ECB’s Draghi: Need Patience On Inflation
ECB’s Draghi: Was Broad Dissatisfaction With Inflation
ECB’s Draghi: FX Rate Is Not A Policy Target