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

Author: Justin Low | Category: Central Banks

ECB announces their latest monetary policy decision - 28 October 2021


  • Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
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  • Maintains PEPP envelope at €1.85 trillion
  • APP will continue at a monthly pace of €20 billion
  • Confirms "moderately lower pace" of net PEPP purchases
  • Expects the key rates to remain at their present or lower levels until it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon
  • Full statement
Pretty much no key changes whatsoever to the statement details and forward guidance, as is expected. It is all about the language today and that will center on Lagarde's press conference instead, as mentioned earlier here.

EUR/USD not much changed and sticking around 1.1600-10 for the most part still now.

If anything, one can take away from this that they are still not interested to formally push back on inflation/rate expectations but I would expect Lagarde to acknowledge the risks on rising price pressures later and dial down rate expectations at least.

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