Thursday, March 5, 2015

European Central Bank leaves interest rate steady at 0.05 pct – Reuters


       

NICOSIA (Reuters) – The European Central Bank kept its main interest rate unchanged at a record low of 0.05 percent on Thursday, while displaying a plan printing money to boost large-scale inflation from negative territory.


       

The decision to keep borrowing costs at record lows was widely expected by after the ECB cut rates to that level in September 2014 and the bank president Mario Draghi said the market had reached the “lower limit”.


       

At Thursday’s meeting in Cyprus, the ECB kept its main refinancing rate, which determines the cost of credit in the economy by 0.05 percent.


       

In addition, the rate of bank kept overnight deposits at -0.20 percent, which means that banks must pay to leave money on the central bank, and left his instrument of credit -or marginal lending rate emergency one day to the benches at 0.30 percent.


       

The markets will turn their attention now on Draghi press conference at 1330 GMT, where investors seek more details on the program of the ECB printing money to buy government bonds, called quantitative easing, which should begin this month.


        

       

(Writing by Paul Carrel. Editing by Patrick Abusleme Spanish)

       
          © Thomson Reuters 2015 All rights reserved.

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