Posted on Apr 22, 2021, 1:47 PMUpdated on Apr 22, 2021, 2:03 PM
The European Central Bank has opted for the status quo. At the end of the Governing Council meeting, it left its key rates at their current levels. The rate of the deposit facility remains fixed at -0.5%, the refinancing rate at zero and the rate of the marginal lending facility at 0.25%. In terms of quantitative easing, it is continuing its purchases of securities on the market as part of the emergency purchasing program linked to the pandemic (PEPP), but without modifying the envelope, raised to 1.850 billion euros last December.
It is not a surprise. Christine Lagarde, the President of the ECB, made it clear last March that important announcements would take place at quarterly meetings, when the central bank has up-to-date economic data. We will therefore have to wait until June to see the Frankfurt institution decide whether or not to change its monetary policy. And in particular the future of its emergency purchasing program.