'Could Draghi leave office without ever hiking rates?' Interest rates set to remain unchanged until end of summer 2019

ECB to extend APP to end of 2018

The European Central Bank (ECB) has laid out plans to continue its €2.3trn asset purchase programme (APP) until the end of the year while indicating interest rates will remain at their current levels until the summer of 2019.

Having reviewed the progress towards a sustained adjustment of the path of inflation, the ECB's Governing Council said it will extend its APP and plans to keep interest rates at current levels. Following its meeting today in Riga, the council has decided to continue making net purchases under the asset purchase programme at the current monthly pace of €30bn until the end of September this year. After this, subject to incoming data confirming its medium-term inflation outlook, th central bank anticiaptes the monthly pace will be reduced to €15bn until the end of December 2018. Net purc...