European Central Bank meeting —

At its 10 December 2020 meeting, the European Central Bank held its policy rate at -0.50%.

Decision

hold — -0.50% to -0.50%

Key passages

the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00 per cent, 0.25 per cent and -0.50 per cent respectively.

Rates left unchanged as expected; no surprise.

The Governing Council 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 per cent within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.

Opens door for rate cuts; very accommodative conditionality.

Meeting documents

Background reading

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