MNI: ECB Leaves Key Interest Rates, APP Unchanged - Text

     LONDON (MNI) - Below is the text release by the European Central Bank's

Governing Council Monetary policy decisions

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     January 25

     Monetary policy decisions

     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 expects the key ECB

interest rates to remain at their present levels for an extended period of time,

and well past the horizon of the net asset purchases.

     Regarding non-standard monetary policy measures, the Governing Council

confirms that the net asset purchases, at the new monthly pace of E30 billion,

are intended to run until the end of September 2018, or beyond, if necessary,

and in any case until the Governing Council sees a sustained adjustment in the

path of inflation consistent with its inflation aim. If the outlook becomes less

favourable, or if financial conditions become inconsistent with further progress

towards a sustained adjustment in the path of inflation, the Governing Council

stands ready to increase the asset purchase programme (APP) in terms of size

and/or duration. 

     The Eurosystem will reinvest the principal payments from maturing

securities purchased under the APP for an extended period of time after the end

of its net asset purchases, and in any case for as long as necessary. This will

contribute both to favourable liquidity conditions and to an appropriate

monetary policy stance.

     The President of the ECB will comment on the considerations underlying

these decisions at a press conference starting at 14:30 CET today.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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