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Draghi "Uncertainty like trade protection … still need monetary stimulus"
(Reuters) – The European Central Bank (ECB) has maintained its key badet buyback and interest rate program on Wednesday 26 June.
The ECB held Monday a monetary policy meeting in Frankfurt, Germany, to maintain its benchmark interest rate, and decided to freeze the deposit rate and the marginal lending rate to -0.40% and 0.25% respectively.
In addition, following the result of the previous monetary policy meeting, he stated that he will maintain the current interest rate until the summer of 2019 .
The ECB reaffirmed its previous policy of ending the quantitative easing policy after reducing the amount of its badets from 30 billion euros in September to 15 billion euros. 39, October to December.
Bought bonds worth 60 billion euros a month at the end of last year, and then reduced to half this year. Until now, the ECB has bought badets worth 2.5 trillion euros.
The ECB announced that it would reinvest capital repayments of mature bonds even after the end of quantitative easing.
He also stressed the need to bring policy inflation closer to the political target of 2% in the medium term.
This decision will reduce the quantitative easing that began in March 2015, but also reaffirmed its intention to react to downside risks through the maintenance of interest rates.
ECB Governor Mario Draghi said at a press conference after the monetary policy meeting: "The euro zone economy is on the path to growth solid and wide. "
However, "the uncertainty of the global economy, including the threat of protectionism, is still unresolved, and the volatility of the financial market should be constantly monitored," he said.
In particular, Dr. Draghi said that US President Donald Trump and European Commissioner Jean-Claude Juncker had agreed to appease trade disputes the day before, saying: "C & # 39; is a good idea of Signal ".
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