ECB keeps rates unchanged; prints money to raise inflation

The European Central Bank left interest rates unchanged as expected on Thursday, holding them at record lows as it prints money to lift the economy and raise inflation.

The decision to leave rates on hold was expected by all 60 analysts polled by Reuters after the ECB cut its deposit rate deeper into negative territory last month as inflation prospects soured further.

At Thursday's meeting, the ECB kept its rate on bank overnight deposits, generally seen as its primary interest rate tool, at -0.40%.

The main refinancing rate, which determines the cost of credit in the economy was unchanged at 0% while the rate on the marginal lending facility - or emergency overnight borrowing rate for banks - remains at 0.25%.

 

Markets now turn their attention to ECB President Mario Draghi's 1230 GMT news conference, where he is expected to provide more detail about some of the already annouced but not yet implemented measures.