Eurozone: ECB holds monetary policy
April 27, 2017
The European Central Bank (ECB) decided to hold interest rates, as widely expected, at its 27 April meeting and made no changes to its bond-buying program. The refinancing rate, the marginal lending rate and the deposit facility rate remain at 0.00%, 0.25% and minus 0.40%, respectively.
The ECB’s monetary policy stance remains ultra-accommodative despite a recent rise in price pressures in the common-currency bloc and clear firming of economic activity. Although inflation receded in March, price pressures are notably above last year’s levels largely due to higher global energy prices, while economic data is overwhelmingly positive. Although incoming data has led market analysts to speculate that the ECB could taper its bond-buying program soon, the Bank held its forward guidance largely unchanged from last month. President Mario Draghi reiterated that interest rates would remain at low levels for an extended period of time and confirmed the Bank’s commitment to buy EUR 60 billion of assets a month.