ECB Leaves Rates Unchanged, Keeps QE At €60BN But May Revise It Higher Or Lower

Tyler Durden's picture

With the market not expecting any changes from the ECB this morning, so far that is precisely what it got, when moments ago the ECB announced that it kept all of its rates unchanged as expected, keeping the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40%, respectively.

In additional language relating to non-standard measures, the ECB also said that "it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017 and that, from April 2017, 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."

It also said that "the net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP" and cautioned that "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 duration."

In other words, it may move QE up or down, depending on what happens with inflation, in line with the ECB's December announcement.

Full ECB statement below.

Monetary policy decisions

 

At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -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.

 

Regarding non-standard monetary policy measures, the Governing Council confirms that it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017 and that, from April 2017, 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 duration.

 

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

And now all eyes on Draghi at 8:30am Eastern.

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Cognitive Dissonance's picture

So let it be written, so let it be done. The fake fiat King has spoken.

WTFRLY's picture

All good, just window dressing for WW3.

SallySnyd's picture

Here is an article that looks at the significant problems facing the global banking sector because of low interest rates:

 

http://viableopposition.blogspot.ca/2016/10/unintended-consequences-iii-...

 

Thanks to the imaginative policies of central banks, particularly in Europe, the banking sector is facing years of stress.

Cognitive Dissonance's picture

And God knows we don't want a stressed banking system. Calm and obscenely profitable is how I like my fake jack makers.

Safelyundergroundlul's picture

I wonder when people will start believing me when I say global Weimar. 

stocktivity's picture

Wow! Really went out on a limb. Dopes

DirkDiggler11's picture

ECB Statement and Press Conference = FAKE NEWS !

two hoots's picture

We are leaviing rates and QE unchanged however  OE will go up or down as needed, thank you.

Everything eise is word drama, noise and dust.  Sometimes I appreicate the brevity of Trump's tweets.

 

 

Kefeer's picture

Same crap - different day!

Vinividivinci's picture

Another wet firecracker...what did you expect ?

indygo55's picture

It could be higher, it could be lower. May may change at any time. All this is a distraction. We control you and your money. That's why you all are looking at us for "guidence". We are in trouble and we are trying to figure out how to maintain control. We'll get back if we want. Go back to work and pay your fucking taxes donkey!

Cognitive Dissonance's picture

I will if you ask nicely and put a cherry on top.

Please? Pretty please?

tuetenueggel's picture

They control the stupid, who relay on printed paper or digits in bank accounts.

Intelligent people don´t relay on this crap since 1974.

Debugas's picture

60bn devided by 0.5bn europeans is equal to 120 eur per person

where is my free 120 euros every month ? For some reason i do not get it, why ?

Bill of Rights's picture

Another words we will keep faking it until we can't Logical economics....Go team.

tuetenueggel's picture

Mario Ndranghi:

 

Yesterday, we stood at the financial Mt. Evcerst ridge.

Tomorrow we´ll be one step further. Hurray hurray hurray

1777's picture

It's only three quarters of a TRILLON Euros per year, what is anyone worried about?

Recovery.... LOL!

DaNuts's picture

Where do they make that sort of dosh?

Innominate's picture

The European banking industry needs 0% interest rates and €60 billion a month just to survive. What other industries need €60 billion a month and free loans just to survive at their current size?

This is such an obvious, and huge, centrally planned economic deformation. They can't do this forever and the reversion to the mean will be mind-blowing.

tuetenueggel's picture

Buy gold and silver for your soon worthless paper.