• Deposit facility rate -0.50%
  • Main refinancing rate 0.00%
  • Marginal lending facility 0.25%
  • ECB revises schedule of APP purchases
  • APP purchases will end in Q3
  • APP volumes will be €30 billion in May and €20 billion in June
  • ECB stands ready to revise schedule again if outlook changes
  • Any change in key rates will come some time after APP purchases end, will be gradual
  • Full statement

A couple of minor changes to accompany the statement, that being the ECB dropping the wording that rates could be lower than they are currently. That is no surprise considering nobody is expecting a rate cut in any case. The forward guidance remains unchanged, but the more hawkish message is that the they are at least putting a timetable to when they could be hiking rates.

By pinning Q3 as the timetable to when APP purchases may end, we could see rate hikes follow shortly after or even in Q3 itself if inflation pressures continue to be sustained in the months ahead.

The euro has jumped on the statement with EUR/USD up from 1.1040 to 1.1100 currently.