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ECB keeps rates unchanged ahead of expected QE announcement
By Michael Hennigan, Finfacts founder and editor
Jan 22, 2015 - 1:06 PM
The European Central Bank has left its key rates unchanged ahead of its expected announcement of a QE (quantities easing) bond-buying program.
At today’s meeting in Frankfurt the central bank said that 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 0.05%, 0.30% and -0.20% respectively.
It was reported on Wednesday that the executive board of the ECB had agreed to monthly purchases of €50bn for at least a year. Mario Draghi, ECB president, said last month that the central bank would allow its balance sheet to grow by €1tn to €3tn - a level last seen in early 2012.
Besides the initial €600bn in 12 months, the central bank has also embarked on other programs to pump liquidity into the Eurozone economy.
Annual inflation fell to 0.2% in December and growth in the Eurozone has been almost stagnant or contracting for years.
A press conference will begin at 1:30 pm Irish time - webcast.
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