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

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

Governing Council Monetary policy decisions

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     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$]