ECB Keeps Rates Unchanged

The European Central Bank kept interest rates unchanged at record lows as investors wait for signs from President Mario Draghi on whether he’ll push for more stimulus for the euro area.

The 24-member Governing Council left the main refinancing rate at 0.05 percent at its meeting today in Frankfurt. The decision was predicted by all 55 economists in a Bloomberg News survey. The deposit rate remained at minus 0.2 percent and the marginal lending rate at 0.3 percent.

The focus now shifts to the press conference at 2:30 p.m., when Draghi will probably insist he can overcome divisions on the Governing Council to boost stimulus if needed. While he’s unlikely to announce major new measures yet, he may use the platform to hint at an expansion of asset purchases as soon as next month, when the ECB will publish new predictions for growth and inflation in the currency bloc.

Bloomberg

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