ECB Keeps Rates Unchanged As Expected

Nobody was expecting any actual rate change announcements by the ECB today, and none were made, with the ECB announcing moments ago that it kept all three rates unchanged, with depositors still expected to pony up %0.20 to keep their funds at a financial institution, while those who take out a mortgage can expect the bank to pay them a likewise amount.

From the ECB:

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 0.05%, 0.30% and -0.20% respectively.

 

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14.30 CET today.

All eyes now on Draghi in 45 minutes where, as DB said, "expect a lot of questions on whether they can see out the term given the distortions its creating in European bond markets" or as Bloomberg reprhrased it, "Draghi is set to be asked at his regular press conference what happens if he succeeds before September 2016." By succeeds, Bloomberg clearly means runs out of bonds to buy, and with Bunds ticking in at 0.13%, and just 33 bps away from the price the ECB can no longer buy them, this will come very soon.