ECB main refinancing rate 0.00% vs 0.00% expected

Highlights of the ECB decision:

  • Deposit rate -0.50% vs -0.50% exp
  • Marginal lending facility +0.25% vs +0.25% exp
  • Says risks clearly tilted to the downside
  • ECB will carefully assess incoming information, including pandemic and prospects for vaccines and developments in the exchange rate
  • New round of forecasts in Dec will allow a thorough reassessment of the economic outlook and balance of risks
The ECB didn’t deliver the surprise that some were expecting after the late-breaking lockups but they certainly put December in play.