ECB Rates Stay at Lowest Level Since March 2016
The European Central Bank (ECB) kept interest rate unchanged, as expected, and reiterated that it will remain steady at least through the summer of 2019. According to today’s decision, the ECB's deposit rate, currently its primary interest rate tool, remains at -0.40%, while the main refinancing rate, which determines the cost of credit in the economy, stayed at 0.0%.
Meanwhile, investors await press conference of the ECB President Mario Draghi. The ECB announced its plans to wind up its massive bond purchasing stimulus program at its June meeting. The Bank is likely to reiterate that it expects its asset purchase program to end in December after halving it to EUR 15 billion per month starting in October.