Views: 0 Author: Site Editor Publish Time: 2021-09-10 Origin: Site
The European Central Bank issued an interest rate resolution on Thursday (September 9), setting the main refinancing interest rate, marginal lending interest rate and deposit mechanism interest rate unchanged at 0.00%, 0.25% and -0.50%, respectively.
The Management Committee estimates that the key interest rate will remain at the current level or lower until the long-term inflation indicator is confirmed to rise and stay at 2%. The bank emphasized that in the short term, inflation may moderately surpass its purpose, and the Management Committee is ready to adjust its monetary policy tools as appropriate to ensure that inflation is stabilized at 2% in the medium term.
The central bank promised to slow down the emergency bond purchase plan (PEPP) in the fourth quarter, but kept the potential range of PEPP unchanged at 1.85 trillion euros. The European Central Bank Management Committee believes that PEPP will be able to avoid excessive tightening of financing conditions. Before the end of 2023, it will continue to stop reinvesting the principal of PEPP's maturing securities until the bank believes that the new crown virus crisis has been over.