The European Central Bank decides to keep interest rates at zero and announces that it will end asset purchases faster than planned.
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The European Central Bank building in Frankfurt, western Germany, February 3, 2022 (AFP).
The European Central Bank decided to keep interest rates at zero.
According to a statement by the European Central Bank published by CNBC, it confirmed that it would “end asset purchases faster than planned,” but said it was ready to “reconsider this decision if expectations change.”
“If the incoming data supports that medium-term inflation expectations will not subside even following our net asset purchases conclude, the Board of Directors will complete net purchases under the ABB (Asset Purchase Program) in the third quarter,” the statement added.
And on net monthly purchases following the implementation, the bank indicated that it will reach 40 billion euros, which is equivalent to 44.5 billion dollars, in April, 30 billion euros in May and 20 billion euros in June.
The bank’s announcement included keeping the standard refinancing rate of the central bank at 0%, while the interest rate on the marginal lending facility remained at 0.25% and the deposit facility rate at 0.5%.
And a few days ago, The Chairman of the US Federal Reserve said He is leaning toward proposing and supporting an interest rate increase, and he will bring the matter up at the US Federal Reserve’s meeting this month.
