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ECB holds rates at record-low 0.0%; Draghi comments eyed

Published 06/02/2016, 07:46 AM
© Reuters.  ECB stands pat on rates; Draghi comments ahead
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Investing.com - The European Central Bank held its benchmark interest rate at a record low as expected on Thursday, as policymakers continue to monitor growth prospects and inflationary pressures in the single currency region.

The ECB said it was maintaining its benchmark interest rate at a record-low 0.0%, in line with market expectations. The central bank also held its deposit facility rate unchanged at -0.4% and left its marginal lending at 0.25%.

Additionally, the ECB also kept the size of its monthly quantitative easing program at approximately €80 billion. The central bank will start buying corporate bonds on June 8 and will conduct its first new targeted LTRO, announced back in March, on June 22.

ECB President Mario Draghi was to comment on the decision at a press conference at 12:30GMT, or 8:30AM ET.

The ECB will also release updated inflation and growth forecasts, with some analysts expecting the bank to raise its projections for inflation and growth.

EUR/USD was trading at 1.1188 from around 1.1185 ahead of the announcement, while EUR/GBP was at 0.7744 from 0.7742 earlier.

Meanwhile, European stock markets were mostly higher. The EURO STOXX 50 inched up 0.35%, France's CAC 40 tacked on 0.1%, Germany's DAX rose 0.1%, while London’s FTSE 100 advanced 0.35%.

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