MNI: ECB Leaves Key Rates Unch, Guidance Amended: Text

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

Governing Council 

     July 25 2019

     Monetary policy decisions

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     Monetary policy decisions

     At today's meeting the Governing Council of the European Central Bank (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 or lower levels at

least through the first half of 2020, and in any case for as long as necessary

to ensure the continued sustained convergence of inflation to its aim over the

medium term.

     The Governing Council intends to continue reinvesting, in full, the

principal payments from maturing securities purchased under the asset purchase

programme for an extended period of time past the date when it starts raising

the key ECB interest rates, and in any case for as long as necessary to maintain

favourable liquidity conditions and an ample degree of monetary accommodation.

     The Governing Council also underlined the need for a highly accommodative

stance of monetary policy for a prolonged period of time, as inflation rates,

both realised and projected, have been persistently below levels that are in

line with its aim. Accordingly, if the medium-term inflation outlook continues

to fall short of its aim, the Governing Council is determined to act, in line

with its commitment to symmetry in the inflation aim. It therefore stands ready

to adjust all of its instruments, as appropriate, to ensure that inflation moves

towards its aim in a sustained manner.

     In this context, the Governing Council has tasked the relevant Eurosystem

Committees with examining options, including ways to reinforce its forward

guidance on policy rates, mitigating measures, such as the design of a tiered

system for reserve remuneration, and options for the size and composition of

potential new net asset purchases.

     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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