ECB leaves key rates unchanged, paving way for action in December

Xinhua News Agency | Oct 29, 2020 at 2:17 PM

FRANKFURT, Oct. 29 (Xinhua) -- The European Central Bank (ECB) on Thursday decided to leave key interest rates unchanged and signaled that it stands ready to ramp up pandemic response in its December meeting.

The 19-nation eurozone base interest rate will remain at 0.00 percent, with the marginal lending rate and deposit rate remaining at 0.25 percent and minus 0.50 percent, respectively, according to a press release issued following the ECB's monetary policy meeting.

The ECB's Governing Council said it will continue its purchases under the pandemic emergency purchase program with a total envelope of 1,350 billion euros (1,580 billion U.S. dollars), as well as its regular asset purchase program. It will also continue to provide ample liquidity through refinancing operations, it said.

"In the current environment of risks clearly tilted to the downside, the Governing Council will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a rollout of vaccines and developments in the exchange rate," the ECB noted in its statement.

The central bank said it will "recalibrate its instruments, as appropriate" on the basis of a new round of macroeconomic projections that are due in December.