The European Central Bank's (ECB) Governing Council announced in a statement on Thursday that it decided to hold the interest rates on the main refinancing operations, on the marginal lending facility and the deposit facility at 0.00%, 0.25% and negative 0.50%, respectively, APA reports citing Teletrader.
"To ensure that the monetary policy stance remains consistent with inflation stabilizing at its target over the medium term," the Asset purchase program (APP) in 2022 will include a "monthly net purchase pace of €40 billion in the second quarter and €30 billion in the third quarter," before coming down to €20 billion per month from October next year. "The Governing Council expects net purchases to end shortly before it starts raising the key ECB interest rates," the bank noted.
Net asset purchases via the pandemic emergency purchase program (PEPP) will be slowed down in the first quarter of 2022 compared to the previous three-month period. The PEPP net asset purchases are expected to end in late March next year but "could also be resumed, if necessary, to counter negative shocks related to the pandemic," the bank added.