Investing.com – The European Central Bank acted as expected on Thursday by keeping interest rates unchanged, although the euro zone monetary authority removed language reflecting the possibility of increasing its asset purchasing program if economic conditions weakened.
Specifically, the ECB left its benchmark interest rate unchanged at 0.00%.
Furthermore, the central bank also coincided with forecasts by holding its deposit facility rate steady at -0.4% and leaving its marginal lending rate at 0.25%.
“The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” the statement repeated.
The ECB also reiterated that it will hold steady on its asset purchase program, with monthly purchases of €30 billion ($37 billion) until “the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim”.
However, the ECB removed from the statement its promise to increase the asset purchase program in terms of size and or duration if the outlook was to become less favorable.
In its place, the central bank added that, “The Eurosystem will reinvest the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary”.
After the announcement and ahead of Draghi, EUR/USD was trading at 1.2414 from around 1.2374 ahead of the release, while EUR/GBP changed hands at 0.8946 compared to 0.88921 earlier.
Traders now look ahead to ECB president Mario Draghi’s press conference at 8:30AM ET (13:30GMT) to see if he will offer further clues on the future path of monetary policy for the euro zone.