European Central Bank keeps interest rates at historic low

European Central Bank keeps interest rates at historic low
Credit: Belga

The European Central Bank (ECB) will keep its interest rates at their historically low level, the bank announced on Thursday.

The bank shared a number of monetary policy decisions in a press release.

"The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon," the ECB said.

The bank's interest rates are currently at 0.00%, 0.25% and -0.50%.

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Additionally, "the envelope for the pandemic emergency purchase programme (PEPP) will be increased by €600 billion to a total of €1,350 billion," the bank announced.

The bank is also extending the period during which net purchases can be made under the PEPP, which is aimed at limiting the effects of the coronavirus health crisis, from the end of December 2020 to "at least the end of June 2021."

In addition, the bank said it will reinvest until at least the end of 2022 the amounts of the PEPP loans when they are repaid to the bank by the borrowers.

Jason Spinks

The Brussels Times

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