European Central Bank meeting —

At its 29 October 2020 meeting, the European Central Bank held its policy rate at -0.50%.

Decision

hold — -0.50% to -0.50%

Key passages

In the current environment of risks clearly tilted to the downside, the Governing Council will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a rollout of vaccines and developments in the exchange rate.

Acknowledges downside risks explicitly, setting a dovish tone.

The new round of Eurosystem staff macroeconomic projections in December will allow a thorough reassessment of the economic outlook and the balance of risks. On the basis of this updated assessment, the Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favourable to support the economic recovery and counteract the negative impact of the pandemic on the projected inflation path.

Strong hint at further easing in December to maintain favourable conditions.

Meeting documents

Background reading

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