European Central Bank meeting —

At its 12 September 2019 meeting, the European Central Bank lowered its policy rate from -0.40% to -0.50%.

Decision

cut — -0.40% to -0.50%

Key passages

The interest rate on the deposit facility will be decreased by 10 basis points to -0.50%.

Direct cut signals easing bias.

The Governing Council now expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.

Lower-for-longer commitment; no rate hikes before inflation converges.

Meeting documents

Background reading

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