ECB leaves key rates unchanged in January monetary policy meeting decision

Author: Justin Low | Category: Central Banks

ECB announces their first policy decision for the new year - 21 January 2021


  • Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
  • ECB expects the key rates to remain at their present or lower levels until inflation outlook robustly converge to a level sufficiently close to, but below, 2%
  • ECB will continue the purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of €1,850 billion
  • The purchases under the PEPP will be conducted to preserve favourable financing conditions over the pandemic period
  • The envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation
  • ECB stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner
  • Full statement
The details and the language in the statement is pretty much a reiteration of their current stance and is no different from after the "recalibration" in December.

The euro is up to session highs against the dollar though, with EUR/USD climbing up from 1.2144 to 1.2155 on the announcement.

That said, the move could just be an extension of the technical picture on the break above the 200-hour moving average @ 1.2134 with buyers looking to now contest the high yesterday closer to 1.2158.

Other than that, there really isn't much else to scrutinise from the statement.

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