European Central Bank stays the course on rates and asset buys

The European Central Bank decided Thursday to keep interest rates unchanged as market players look for clues on whether the central bank will soon lift its massive pandemic-era stimulus, CNBC reports.

“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 percent within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics,” the bank said in a statement.

Recent data has shown an overshoot in inflation for the 19-member area that shares the euro, to above the ECB’s target of close to but below 2 percent. The ECB had previously said it was expecting prices to pick up in 2021, but only temporarily.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.