ECB leaves key rates unchanged in June monetary policy meeting, as expected

Author: Justin Low | Category: Central Banks

ECB announces their latest monetary policy decision - 10 June 2021


  • Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
  • PEPP to continue through until at least end of March 2022
  • PEPP to continue to run at a significantly higher pace
  • Future roll-off of PEPP will not harm policy stance
  • Reaffirms size of PEPP at €1.85 trillion
  • APP to continue at pace of €20 billion per month
  • Expects rates to remain at present levels or lower until inflation outlook has robustly converge to a level sufficiently close to, but below, 2% within projection horizon
  • Full statement
The part on PEPP highlighted in bold is the key takeaway i.e. no changes from policy as laid out back in April. The language on rates is also similar and that is no surprise as the ECB steers clear of any taper talk in the latest decision today.

EUR/USD got a 20-pip whipsaw but is little changed overall, trading slightly lower around 1.2170. Euro bulls may be a bit disappointed but the statement pretty much sits within market expectations so there isn't much to be surprised.

Lagarde's presser will be due at 1230 GMT so watch out for that next.

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