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ECB interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged. 

BankofECB

 

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

Regarding non-standard monetary policy measures, the Governing Council confirms that from January 2018 it intends to continue to make net asset purchases under the asset purchase programme (APP), at a monthly pace of €30 billion, until the end of September 2018, 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. 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 APP in terms of size and/or duration. The Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. This will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance.

Draghi Press Conference Highlights:

Forecast revisions go 'in the right direction'
Corporate bond purchases were not discussed. They're a more remote possibility now than 6 months ago
The forward guidance on interest rates is unchanged
The news on inflation remains somewhat muted
The design of the QE program was not discussed today
The economic recovery is more advanced in the US than in Europe, especially relating to wages
'Vast majority' of ECB wants open-ended asset purchases
Losses from corporate-debt programs are not unusual, but have been 'exaggerated'
Likelihood of economic downturn very, very small
The muted response to wages is way, way slower than in the past
Slow wage inflation gives us caution about making pronouncements about inflation
We never discuss a sudden stop to QE

Source: Euopean Central Bank

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