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ECB keeps interest rates unchanged as Draghi says goodbye to Frankfurt



FRANKFURT MAIN, GERMANY – September 12] Sean Gallup | Get News Images Getty Images

The European Central Bank (ECB) has kept interest rates unchanged on Thursday – marking the last meeting of Mario Draghi's bank with the bank.

The Central Bank also kept its forward guidance unchanged, suggesting that basic interest rates would remain at their current or lower levels until there was strong evidence of price increases.

The Frankfurt-based central bank announced last month a major stimulus package to boost the euro area. This included 1

0 basis points, reduced by the deposit rate, new conditions for lending to commercial banks, and a second round of quantitative easing. The current ECB deposit rate is -0.5%, the lowest of the registered ones.

The eurozone's sluggish economy, sustained low inflation and the US-China trade war are pushing the central bank to inject stimulus.

Draghi's decision caused some division in the central bank. Minutes of the meeting revealed that some of Draghi's colleagues were not on board with the decision.

However, the ECB reiterated on Thursday that the second round of QE will start on November 1 at a monthly rate of € 20 billion ($ 22.3 billion) a month.

"The Governing Council expects them to apply for as long as is necessary to enhance the impact of their interest rates and to end shortly before it begins to raise key ECB interest rates," the bank said. .

Mario Draghi will leave the European Central Bank (ECB) after eight years leading the institution that changed the way monetary policy is conducted in the euro area.


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