In the policy meeting on September 10 in the online form, the Council of European Central Bank (ECB) has decided to keep the key interest rates and economic stimulus programs intact.
This decision was made in the context that the Eurozone is still fighting with the recession caused by the COVID-19 pandemic. As expected, the ECB kept the refinancing rate at 0.25% and deposit rate at -0.5%.
In addition, the program to buy emergency bonds during the epidemic worth 1,350 billion euros (1,600 billion USD) has also been maintained. This program is expected to last at least until the end of June 2021 or until the ECB assessment of the crisis phase due to COVID-19 has ended.
All attention is now on the press conference in Frankfurt of ECB President Christine Lagarde, with speculation that Ms. Lagarde will announce the forecast for inflation and growth of the Eurozone.
The Eurozone economy has fallen by a record 12% in the second quarter of 2020. The bank’s forecasts will show that the regional economy is on track to recover thanks to the loosened blockade measures and the return to normal lives.
Most analysts believe that the ECB will wait until the next December meeting to come up with new policy actions, likely to prolong or increase the economic stimulus program.