European Central Bank Holds Key Interest Rate at 0%... "Full Effort to Stabilize Inflation" (Update)

European Central Bank (ECB) headquarters located in Frankfurt, Germany

[Asia Economy Reporter Kim Bo-kyung] The European Central Bank (ECB) announced on the 3rd (local time) that it will maintain the benchmark interest rate at the current 0%. The ECB has kept the benchmark interest rate at 0% since 2016.

On the same day, the ECB held a monetary policy meeting in Frankfurt, Germany, deciding to keep the benchmark interest rate at the current 0%, and to maintain the deposit rate and marginal lending rate at -0.50% and 0.25%, respectively.

The ECB stated that it will slow down the pace of asset purchases under the Pandemic Emergency Purchase Programme (PEPP) in the first quarter of this year compared to the previous quarter, and plans to stop asset purchases under the program by March next year.

It also said it will use all available tools to stabilize the inflation rate at the medium-term target of 2%. Last month, the Eurozone's Consumer Price Index (CPI) rose 5.1% year-on-year, indicating an accelerating inflation trend.

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