ECB keeps rates unchanged, continues asset purchase

By Yunus Girgin

ANKARA (AA) - The European Central Bank (ECB) on Thursday decided to keep interest rates unchanged, complying with the market expectations.

Interest rates on main refinancing operations, marginal lending and deposit facility are 0.00%, 0.25%, and -0.50%, respectively, according to the bank's statement.

Moreover, the bank extended its swap and repo lines with non-euro area central banks for euro liquidity until March 2022.

The ECB decided to increase its purchases under the pandemic emergency purchase program (PEPP) by €500 billion ($605.7 million) to a total of €1.85 trillion ($2.24 trillion).

The bank said it will conduct net asset purchases under the PEPP until at least the end of March 2022 and, in any case, until it judges that the coronavirus crisis phase is over.

The ECB also decided to extend its targeted longer-term refinancing operations III (TLTRO III).

"The Governing Council decided to extend the period over which considerably more favourable terms will apply by 12 months, to June 2022", it added.

Also, the ECB noted net purchases under the asset purchase program (APP) will continue at a monthly pace of €20 billion.