FRANKFURT AM MAIN, Germany – The European Central Bank announced on Thursday it would be keeping its historically-low interest rates at 0 percent, with prospects of them remaining at said level for the foreseeable future in order to support the Eurozone’s ongoing recovery.
Following a meeting of its executive board, the ECB added that it would maintain its marginal deposit facility at 0.4 percent and the marginal lending facility at 0.25 percent.
“The Government 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,” an ECB statement said.
President of the ECB Mario Draghi spoke of the policy decisions on Thursday afternoon and the bank’s headquarters in Frankfurt.
He said that the measures “were taken to preserve the very favorable financing conditions.”
Eurozone inflation was at 1.5 percent, while underlying inflation, which excludes the most volatile commodities like energy and fresh foods, was at 1.1 percent.
The ECB lowered the official interest rate at which it lends to banks in weekly refinancing operations to 0 percent in March 2016, in order to avoid deflation in the Eurozone.