ECB Keeps Rates On Hold, Keeps Dovish “Extended Period Of Time” Forward Guidance

Jon Alternative Media, Banking, Blogosphere, Market Commentary

Moments ago the ECB kept all three rates on hold, however in a dovish addition, it kept its current forward guidance which some analysts had expected may be scrapped, by noting that “the Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.” As a result, the EURUSD has sign a modest drop on the announcement while Bunds futures gained once algos noticed that contrary to some expectations, the forward guidance would remain.
Full statement below:
At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.

This post was published at Zero Hedge on Mar 9, 2017.