ECB Draghi: future interest rates will remain at current or lower levels

ECB Draghi: future interest rates will remain at current or lower levels

  The European Central Bank announced Wednesday, to maintain the current interest rates unchanged at a record low, to maintain the size of the monthly QE unchanged at 80 billion euros.

  ECB maintained the main refinancing rate to maintain the 0% unchanged, in line with expectations. To maintain the overnight deposit rate unchanged -0.4%, in line with expectations. To maintain the overnight lending rate 0.25 percent, in line with expectations. The ECB also said that details of corporate bonds purchased will be announced later. We will focus on the implementation of measures to March 10 meeting.

  European Central Bank President Mario Draghi said: next time interest rates will remain at current or lower levels. After QE interest rates will remain low. QE will continue at least until March 2017. QE will continue until inflation is maintained at a target level of sustainability. The ECB will be very close monitoring of progress. As long as necessary, the ECB has the right to implement stimulus measures. CMC agreed to defend the independence of the ECB opinion.

  For the euro area economy and inflation, Draghi said the economic growth is likely similar to the fourth quarter of last year in the first quarter of this year. Low oil prices to support domestic demand. Expected economic recovery continues. It is essential to avoid secondary effects. Emerging markets tend to dim prospects, a negative impact on the eurozone. Eurozone economic outlook downside risks.

  For a series of new measures last month, Draghi said the March of policies to help avoid a second-round effect. ECB policy effective, but must have sufficient time.

  For inflation, Draghi said that inflation is likely to fall in the next few months the negative range. Inflation will rise in the second half of this year, 2017/2018 improved.

  For the purchase of corporate bonds included in the scope of the problem, Draghi said that in June will start buying corporate bonds.

  As for the recent market hot “helicopter money” issue, Draghi responded that the ECB did not consider “helicopter money.” “Helicopter money” involves difficulties in the operation. It plans to buy corporate bonds for up to 30 years.

  After Announcing the interest rate decision, the euro / dollar short-term rose 20 points, rose more than 0.3 percent, reported 1.1331, high refresh date. However, after the Drudge speech, the euro rapidly declined against the US dollar.

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