Summary

 ·       Keep ECB interest rates unchanged and expect to remain so at least through the summer of 2019. (unchanged)

·       ECB expects to remain at their present interest rate levels at least through the end 2020 – previously first half of 2019. (changed)

·       Intend to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme 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 favourable liquidity conditions and an ample degree of monetary accommodation. (unchanged)

·       Under the targeted longer-term refinancing operations (TLTROs), the interest rate in each operation will be set at a level that is 10bp above the average rate applied in the Eurosystem’s main refinancing operations over the life of the respective TLTRO. For banks whose eligible net lending exceeds a benchmark, the rate applied in TLTRO III will be lower and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation plus 10bp.(new) This will help to safeguard favourable bank lending conditions.

·       Continue conducting our lending operations as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the reserve maintenance period starting in March 2021. (new)

·       The positive contribution of negative interest rates to the accommodative monetary policy stance and to the sustained convergence of inflation is not undermined by possible side effects on bank-based intermediation. (new)

·       The most recent information indicates that global headwinds continue to weigh on the euro area outlook. The prolonged presence of uncertainties, related to geopolitical factors, the rising threat of protectionism and vulnerabilities in emerging markets, is leaving its mark on economic sentiment. (unchanged)

·       Economic projections foresee annual real GDP increasing by 1.2% in 2019 (from 1.1% in March), 1.4% in 2020 (from 1.6% in March) and 1.4% in 2021 (from 1.5% in March). (changed)

·       An ample degree of monetary accommodation is still necessary for the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. (no change)

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