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TEXT: ECB Leaves Key Interest Rates Unchanged, Trims Bond Buys

MNI (London)
     LONDON (MNI) - Below is the text release by the European Central Bank's
Governing Council Monetary policy decisions
     =================================================================
     October 26
     At today's meeting the Governing Council of the ECB took the following
monetary policy decisions:
     (1) 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 their present levels
for an extended period of time, and well past the horizon of the net asset
purchases.
     (2) As regards non-standard monetary policy measures, purchases under the
asset purchase programme (APP) will continue at the current monthly pace of E60
billion until the end of December 2017. From January 2018 the net asset
purchases are intended to continue at a monthly pace of E30 billion 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 APP in terms of size and/or duration.
     (3) 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.
     (4) The main refinancing operations and the three-month longer-term
refinancing operations will continue to be conducted as fixed rate tender
procedures with full allotment for as long as necessary, and at least until the
end of the last reserve maintenance period of 2019.
     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
[TOPICS: M$X$$$,MC$$$$,M$$EC$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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