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Headline Policy Unchanged, Few Surprises in Statement

ECB

ECB keep all three main rates unchanged, as expected:

  • Main refi rate unch at 4.50%
  • Marginal lending rate unch at 4.75%
  • Deposit rate unch at 4.00%

Full paragraph on PEPP:

  • "The Governing Council also decided today to advance the normalisation of the Eurosystem’s balance sheet. It intends to continue to reinvest, in full, the principal payments from maturing securities purchased under the pandemic emergency purchase programme (PEPP) during the first half of 2024.
  • "Over the second half of the year, it intends to reduce the PEPP portfolio by €7.5 billion per month on average. The Governing Council intends to discontinue reinvestments under the PEPP at the end of 2024.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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