ECB Keeps Rates Unchanged, Says Corporate Bond Buying Has Begun: EUR Jumps
By Tyler Durden
As was widely expected, moments ago the “sleepy” ECB announced that all its three key rates remain unchanged: “the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.” There was one notably addition: the ECB announced it has “started to expand our monthly purchases under the asset purchase programme to €80 billion” as was also expected considering the tremendous rip in European corporate bonds.
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.
Regarding non-standard monetary policy measures, we have started to expand our monthly purchases under the asset purchase programme to €80 billion. The focus is now on the implementation of the additional non-standard measures decided on 10 March 2016. Further information on the implementation aspects of the corporate sector purchase programme will be released after the press conference on the ECB’s website.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
For Draghi’s presser, check back in 45 minutes.
The initial reaction in the EUR appears to be modest disappointment, as the EUR jumps to session highs.
Source: ECB Keeps Rates Unchanged, Says Corporate Bond Buying Has Begun: EUR Jumps
