March 8–The Governing Council of the European Central Bank left three key interest rates at their current rates and said it would continue to do so “an extended period of time, and well past the horizon of the net asset purchases.”

The ECB Governing Council said inflation is “consistent” with its aim of 2 percent.

The three key interest rates are the 1.) main refinancing operations, 2.) the marginal lending facility, and 3.) the deposit facility. Those will remain unchanged at 0.00%, 0.25% and -0.40% respectively.

Continued Liquidity

The ECB plans to continue to purchase net assets at the current rate of €30 billion per month, putting liquidity back into the system through at least the end of September 2018.

“This will contribute both to favorable liquidity conditions and to an appropriate monetary policy stance,” ECB President Mario Draghi said on Thursday.

Continued Growth, Modest Inflation

The ECB estimated a higher growth rate for the Eurosystem than previously expected. It sees annual real GDP increasing to 2.4 percent in 2018, before falling to 1.9% in 2019 and 1.7% in 2020. ECB economists, meanwhile, revised earlier projections on the HICP inflation rates to project them at 1.4 percent in 2018, 1.4 percent in 2019 and 1.7 percent in 2020.

For more on the ECB statements and press conference, go to the ECB website.


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About Author

Patti Mohr is an independent journalist living in North Carolina. She has a Master's Degree in International Commerce and Policy from George Mason University and a Bachelor's Degree in Political Science and a certificate in journalism from the University of Cincinnati. After spending 12 years working in Washington, D.C., Patti moved to North Carolina where she consulted clients with their resumes and began working in property management. She continued to work on research and writing on an independent basis and conceptualized the structure for a media organization that would support independent journalism. Patti's lifelong dream is to pursue a career in writing about international relations. She has a strong belief in the fundamentals of journalism, namely the pursuit of truth, the maintenance of independence from sources, and in the verification of information. She is a reliable researcher with strong analytical and problem-solving skills.