ECB leaves benchmark interest rate and QE unchanged

At its monetary policy meeting held today, the Governing Council of the European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.40%, respectively. Attention now turns to the  ECB President Mario Draghi's press conference at 12:30 GMT.

Key highlights from the official statement

• The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019.
• Regarding non-standard monetary policy measures, the Governing Council will continue to make net purchases under the asset purchase programme (APP) at the current monthly pace of €30 billion until the end of this month. 
• The Governing Council will reduce the monthly pace of the net asset purchases to €15 billion until the end of December 2018.

Key notes

ECB: QE net purchases to be phased out? – Deutsche Bank.

Economists at Deutsche Bank expect that today we’ll get a confirmation that QE net purchases will be phased out in the final quarter of this year in the forthcoming ECB meet.

EUR/USD to see through ECB meeting – Danske Bank.

Analysts at Danske Bank suggest that today when the ECB President Mario Draghi takes the stand, they do not expect it to be a big event for EUR/USD.

About ECB's press conference

Following the ECB´s economic policy decision, the ECB president gives a press conference regarding monetary policy. His comments may influence the volatility of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.