Summary

  • Keep ECB interest rates unchanged and expect them to remain at their present or lower levels at least through Q2 of 2020. (unchanged)
  • Intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase program for an extended period of time past the date when we start raising the key ECB interest rates, and in any case for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation. (unchanged)
  • ECB underlined the need for a highly accommodative stance of monetary policy for a prolonged period of time, as inflation rates, both realized and projected, have been persistently below levels that are in line with its aim. If the medium-term inflation outlook continues to fall short of ECB’s aim, it is determined to act, in line with its commitment to symmetry in the inflation aim. It stands ready to adjust all of its instruments to ensure that inflation moves towards its aim in a sustained manner. (new)
  • Relevant Eurosystem Committees tasked with examining options, including ways to reinforce its forward guidance on policy rates, the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases. (new)
  • The prolonged presence of uncertainties, related to geopolitical factors, the rising threat of protectionism and vulnerabilities in emerging markets, is dampening economic sentiment, notably in the manufacturing sector. Inflationary pressures remain muted and inflation expectations have declined. A significant degree of monetary stimulus continues to be necessary to ensure that financial conditions remain very favorable and support the euro area expansion. (new)
  • In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential and reducing vulnerabilities. The implementation of structural reforms in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment and increase resilience. (unchanged)

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