ECB left the base rate at a record low

Photo: Reuters/Pixstream

The European Central Bank left the rate on loans to zero and kept the terms of the program of quantitative easing.

The European Central Bank (ECB) at the meeting of October 20 held its key tools of its monetary policy on the level of the last seven months. As reported on the website of the regulator, the base interest rate remained at the record low level — 0%, Deposit rate — at minus 0.4 percent, the rate on margin loans is 0.25%.

The regulator has kept the asset purchase programme of quantitative easing (QE) in the amount of €80 billion Programme will run until March 2017, and its volume will amount to €1.7 trillion. If necessary, the expiration date may be extended, said the ECB.

According to most analysts surveyed by Bloomberg, the regulator will extend the QE program at least six months. It will happen, probably at the meeting on 8 December.

Eurozone inflation is 0.4%, significantly below the target level of 2%, to achieve which the Central Bank applies a policy of low interest rates and quantitative easing. The ECB notes that investors ‘ expectations for additional stimulus are reflected in the forecasts of the regulator.

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