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As predicted by most experts, the interest rate on major refinancing operations will remain at a record 0% and the interest rate on the marginal line of credit will be 0.25%.
The interest rate at the deposit facility will remain less than 0.5 percent.
In a statement released after the meeting, the ECB noted that rates would remain at current or lower levels until inflation in the euro area approached the target level applied by the euro area central bank.
The ECB also announced the launch of a new long-term loan program for euro area banks, reduced the interest rate on specific longer-term refinancing operations (TITRO III) and expressed its willingness to increase the Program Pandemic Emergency Purchase Plan (PEPP). which was announced in March, currently stands at $ 750 billion. euros
New non-selective pandemic emergency (PELTRO) long-term refinancing operations announced by the euro area central bank will aim to maintain liquidity in the euro area financial system and ensure the smooth operation of money markets , indicated in a notice published by the ECB.
This program will start in May.
The ECB has also relaxed the terms of the third series of TITRO (TITRO III) and the interest rate on loans under this program will be 50 basis points lower than the deposit rate.
Furthermore, the ECB has promised to continue buying bonds under the PEP until the Governing Council decides that “the crisis caused by the coronavirus pandemic has ended, and in any case until the end of this year.”
“The Governing Council is fully prepared to increase the scope of the PEPP and adjust its parameters, when necessary,” the report said. “In any event, the Governing Council is ready to adjust, if necessary, all available measures to ensure a sustainable approach to inflation in the euro area towards the target level.”
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