ECB holds rates; to restart QE in November

Thursday, 24. October 2019 13:46

In its last update under President Mario Draghi, the Governing Council of the European Central Bank held its stance unchanged. In line with the plan released earlier, the so-called asset purchase program will be resumed starting on November 1, the rate-setters said. The size is €20 billion per month and the scheme, also known as quantitative easing, is open-ended.

As for the forward guidance for bond buying, the statement adds it would be maintained "for as long as necessary to reinforce the accommodative impact" of the recent reduction in borrowing costs. Policymakers said they would end the purchases just before it starts raising interest rates.

The refinancing rate is zero compared to 0.25% for the marginal lending facility and 0.4% under zero for deposits. The ECB's outgoing leader is due to hold a press conference shortly in Frankfurt.

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