ECB keeps interest rates at record lows

The European Central Bank kept interest rates at record lows on Thursday, saying it would hold borrowing costs at their present levels on an open-ended basis amid weak inflation.

The ECB's 25-member governing council said it was holding its key refinancing rate at zero and confirmed that it would launch its new €20bn-a-month bond-buying programme from 1 November. The bank also said it was holding its deposit rate at minus 0.5% and the marginal lending rate at plus 0.25%.

Mario Draghi ends next week his eight year term as ECB president, handing the office to the former IMF chief Christine Lagarde. At his last press conference Draghi said the ECB was ready to modify its instruments. According to him now the main risk facing the global economy was a downturn.

During his term Draghi famously did "whatever it takes" to preserve the euro and launched a massive bond-buying programme called quantitative easing to bolster the eurozone, ANSA noted.

 

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