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The ECB keeps interest rates unchanged at minus 0.50 percent, but offers cheaper loans to banks. The € 750 billion crisis package has yet to be modified.
EU Governor Christine Lagarde presents the central bank interest rate decision and new forecasts on Thursday.
François Lenoir / X01164
published:,
The European Central Bank (ESB) keeps interest rates unchanged at minus 0.50 percent, as expected.
The Corona Crisis Program (PEPP), which was launched in March, and includes the purchase of 750 billion euros of public debt, was also not modified at this time.
Expectations for the expansion of this crisis package have increased as the virus spreads.
However, the ESB says the bank is ready to extend the crisis package and adjust its content as necessary. Crisis shopping will continue until the crown crisis ends, and at the end of the year.
The regular support purchase program of € 20 billion per month is also continuing, in addition to additional purchases of a total of € 120 billion, launched in March.
Cheaper bank loans
Meanwhile, the ECB is cutting interest rates on so-called LTRO loans to banks. These are long-term loans designed to guarantee reasonable liquidity for banks in extraordinary situations.
In addition, a new round of pandemic-related, affordable, long-term lending operations is launched, called PELTRO.
It is repeated that interest rates will remain at or below the current level until the inflation outlook approaches the two percent target.
Low record GDP in the eurozone
EU President Christine Lagarde will hold a press conference at 14:30. Then, it will probably also present new forecasts for the economy.
On Thursday morning, preliminary figures for the euro zone showed a 3.8 percent decline in GDP in the first quarter. That is the weakest since measurements began in 1995. According to Reuters, a 3.5 percent decrease was expected beforehand.
Press conference, see here ESBBNP press release EurostatReuters figures: Eurozone economy shrinks at record rate, worse to come
