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ECB Leaves Rates Unchanged

July 3, 2014



VIENNA (Alliance News) - The European Central Bank on Thursday left its interest rates unchanged, after reducing them in June while announcing several liquidity measures.

The Governing Council, led by President Mario Draghi, held the refinancing rate at a record low 0.15%, following its policy meeting in Frankfurt.

The bank retained the deposit rate at -0.10%. In June, the bank slashed the rate from zero to negative, which in effect would charge Eurozone banks for parking excess funds at the ECB, a first for a leading central bank.

The marginal lending rate was held 0.40%, following the 35 basis point reduction in June.

The bank had kept rates unchanged for six consecutive months before June, despite immense pressure on it to act amid deflation risks.

Draghi is set hold his customary post-decision press conference at 8.30 am ET, wherein he is expected to shed light on the impact of June measures.



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Source: Alliance News


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