ECB left monetary policy unchanged and “reconfirm its very accommodative monetary policy stance”. Main refinancing rate, marginal lending facility rate, and deposit rate are held at 0.00%, 0.25%, and -0.50% respectively.
The pandemic emergency purchase programme (PEPP) will continue with an envelop of EUR 1850B, “until at least the end of March 2022”. It also expects PEPP to be carried out at a “significantly higher pace” during the current quarter. ECB also stands ready to “recalibrated” the envelop if required. The asset purchase programme (APP) will continue at a monthly pace of EUR 20B. It will also continue to provide “ample liquidity” through the refinancing operations.
Finally, ECB “stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry.”