European Central Bank Holds Key Interest Rate at 0%... Maintains Scale and Pace of Quantitative Easing

Base Interest Rate Held Steady at 0%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Ki Ha-young] The European Central Bank (ECB) on the 10th (local time) kept its key interest rate at 0%. The scale and pace of monetary easing measures implemented in response to the COVID-19 crisis will be maintained as is.

On the day, the ECB held a monetary policy meeting in Frankfurt, Germany, and decided to keep the key interest rate at the current 0%, while maintaining the deposit rate and marginal lending rate at -0.50% and 0.25%, respectively.

In its monetary policy statement, the ECB said, "The key interest rate will remain at the current low level until the inflation rate projection firmly converges below 2%."

To respond to the economic impact of the COVID-19 outbreak, the ECB will maintain the bond purchase volume under the Pandemic Emergency Purchase Programme (PEPP) at least until the end of March next year at 1.85 trillion euros. It will continue liquidity supply through the Targeted Longer-Term Refinancing Operations III (TLTRO III) and sustain the Asset Purchase Programme (APP) at a scale of 20 billion euros per month (approximately 27 trillion won).

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