ECB leaves key policy rates unchanged as expected

CB announces their latest monetary policy decision – 10 September 2020

  • Prior decision (16 July)
  • Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
  • To continue purchases under PEPP program with a total of €1.35 trillion
  • Purchases will continue to be conducted in a flexible manner over time
  • Reaffirms to conduct purchases under PEPP until at least the end of June 2021
  • To continue to provide ample liquidity through refinancing operations
  • Stands ready to adjust all instruments, as appropriate, to ensure inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry
  • Full statement
Pretty much a non-event with the statement language pretty much a mirror of that in July. The euro is rightfully little changed on the announcement as all eyes turn towards Lagarde’s press conference later at 1230 GMT for more clues on the central bank’s latest economic forecasts, inflation outlook, and potential thoughts about the euro currency.