European Central Bank Holds Interest Rate Steady at 0%...

'Pandemic Emergency Purchase Program' Also Continues

European Central Bank (ECB) headquarters located in Frankfurt, Germany

[Asia Economy Reporter Ki Ha-young] The European Central Bank (ECB) decided on the 16th (local time) to keep the key interest rate unchanged and to continue bond purchases planned as a response to the novel coronavirus disease (COVID-19).

The ECB held a monetary policy meeting in Frankfurt, Germany, on the same day and announced that it would maintain the key interest rate at the current 0%, and keep the deposit rate and marginal lending rate at the current -0.50% and 0.25%, respectively.

The ECB stated that it expects to keep interest rates at the current level or lower until inflation converges to the target level of 2%.

To respond to the economic impact caused by COVID-19, the ECB decided to continue executing the €1.35 trillion Pandemic Emergency Purchase Programme (PEPP) as planned. The net asset purchases at the level of €20 billion per month, which started in November last year, will also continue as scheduled. Additionally, the policy to temporarily purchase an additional €120 billion in assets until the end of this year, implemented after the COVID-19 outbreak, was also maintained.