The European Central Bank on Friday left key interest rates unchanged and reiterated the tapering of bond buying plan from April.
The Governing Council of the ECB decided that the interest rate on the main refinancing operations, marginal lending facility and the deposit facility will remain unchanged at 0%, 0.25% and minus 0.40%, respectively.
“The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases,” ECB said in a statement.
On the quantitative easing, ECB said it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of this month.
From April, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.
The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP.
“If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and or the duration,” the ECB said.