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ECB holds; Draghi remarks awaited

Published 09/07/2017, 07:48 AM
© Reuters.  ECB holds; Draghi remarks awaited
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Investing.com - The European Central Bank left its interest rates unchanged on Thursday, in a widely anticipated decision and made no changes to its monetary policy statement.

The ECB kept its rate on bank overnight deposits, which is currently its primary interest rate tool, at -0.40%.

The main refinancing rate was unchanged at zero while the rate on the marginal lending facility, or emergency overnight borrowing rate for banks, stayed at 0.25%.

The ECB reiterated that it expects policy rates to remain “at present levels” for an extended period of time, and well past the horizon of the net asset purchases.

The bank also reiterated that it sees its asset purchase program continuing at the current monthly pace of €60 billion ($65.4 billion) until the end of December 2017, “or beyond, if necessary”.

Market participants were turning their attention to ECB President Mario Draghi's press conference at 08.30 AM ET, amid uncertainty over whether he will finally confirm plans to start scaling back the central bank’s bond buying program from the current €60 billion per month.

Draghi could also address the strength of the euro, which hit an eight-year high against the pound and a two-and-a-half year peak against the dollar last month.

EUR/USD was at 1.1975 from around 1.1981 ahead of the announcement, while EUR/GBP was at 0.9148 from around 0.9147 earlier.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.39% at 91.85.

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