Purchases under 1.85 trillion. a special pandemic securities purchase program of EUR Pandemic Emergency Purchase Programme, or PEPP) will be “slightly lower” than in the second and third quarters, and interest rates will remain at historically low levels for the time being, the Governing Council announced after the meeting.
The bank maintained 0 percent. interest rate on the main refinancing operations and 0.25%. interest rate using the marginal lending facility.
The interest rate on the deposit facility remains minus 0.5 percent.
The bank also decided to continue its monthly bond purchases at a “slightly slower” pace than in the second and third quarters of this turbulent period for the euro area economy.
1.85 trln. A special pandemic securities purchase program Pandemic Emergency Purchase Programme, or PEPP) is the ECB ‘s main anti – crisis tool to keep growth costs low, which is conducive to economic growth.
Still, despite the decision to refrain from change, policymakers have split into “hawks” advocating tighter monetary policies to curb inflation and “pigeons” seeking to maintain the bank’s expansionary policies.
In September, prices in the euro area jumped by 3.4 percent. and it was the highest rate in 13 years, driven by rapidly rising energy costs, well above the bank’s 2% target. inflation target.
Carsten Brzeski, an economist at ING, believes that ECB President Christine Lagarde will need “all the energy at her disposal” to bring the two sides closer.
The ECB meeting took place a week before the US Federal Reserve (FRS) and Bank of England policy makers.
The FRS has already indicated that it is “approaching” the end of its stimulus program as inflation in the US rises.
Bank of England chief Andrew Bailey, meanwhile, said the British central bank would “have to take action” on inflation, leading to speculation that interest rates could be raised as early as next week.
Elsewhere in the European Union, interest-setting countries have reacted strongly to inflation, with both Polish and Czech central banks raising interest rates to their highest levels in recent years.