European Central Bank meeting —

At its 4 June 2020 meeting, the European Central Bank held its policy rate at -0.50%.

Decision

hold — -0.50% to -0.50%

Key passages

The envelope for the pandemic emergency purchase programme (PEPP) will be increased by €600 billion to a total of €1,350 billion.

Larger-than-expected PEPP increase signals strong stimulus.

In response to the pandemic-related downward revision to inflation over the projection horizon, the PEPP expansion will further ease the general monetary policy stance, supporting funding conditions in the real economy, especially for businesses and households.

Inflation downgrade justifies increased stimulus.

Meeting documents

Background reading

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