ECB fixes interest rates

Yesterday the European Central Bank decided to keep interest rates unchanged as it kept interest rates on refinancing operations at 0.00% and marginal lending rates and deposit facilities at 0.25% and -0.50%, respectively.

But the European Central Bank announced a package of incentive measures to counter the impact of the outbreak of the Corona virus, and Andrea Inria, the European Central Bank’s main supervisor, said that “banks should be in a position to continue financing families and companies facing temporary difficulties.”

As part of its actions, the European Central Bank will provide banks with loans at a low rate of 0.75% below the -0.5% deposit rate, and will increase bond purchases by 120 billion euros this year with a focus on corporate debt.