ECB leaves interest rates unchanged and sticks to its policy guidance
The European Central Bank has kept interest rates unchanged. Now markets await word from bank president Mario Draghi on the future of its asset buys
FRANKFURT — The European Central Bank kept interest rates and policy guidance unchanged on Thursday, but may lay the groundwork for easing in December as it tries to sustain a long-awaited rebound in consumer prices. Holding interest rates deep in negative territory and maintaining bond purchases at €80bn a month, ECB president Mario Draghi is expected to stress the continued need for monetary stimulus, reinforcing expectations for an extension of the ECB’s asset buys beyond its scheduled end next March. The ECB has provided unprecedented stimulus for years with sub-zero rates, free loans to banks and more than €1-trillion in bond purchases hoping to revive growth and lift inflation back to its target of just below 2% after more than three years of misses. Draghi kept the deposit rate at minus 0.4% on Thursday and maintained the ECB’s guidance for rates to stay at current or lower levels for an extended period. The trick for Draghi will be to keep the door firmly open to more stimul...
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