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The ECB keeps interest rates at 0.00%


The ECB keeps interest rates at 0.00%

The Governing Council of the European Central Bank (ECB) has decided to maintain its monetary policy stance and has frozen interest rates at 0.00%. These levels will be maintained until the inflation outlook solidly converges to a level close enough to 2%, "within its projection horizon," according to the institution.

The objective of the measure is to support the economy of the euro area, given the prolongation of the confinements. At the same time, it maintains the marginal credit facility at 0.25%, the interest rate charged to banks for overnight loans, and the deposit facility at -0.50%, the interest rate with the one that traditionally paid overnight deposits.

"The Governing Council expects the ECB's key interest rates to remain at their current levels or lower until the inflation outlook solidly converges to a level close enough to, but below, 2%, within its horizon of projection, and this convergence has been consistently reflected in the dynamics of core inflation, "reads the agency's statement.
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