Today, the European Central Bank kept its monetary policy unchanged, after reviewing the economic repercussions of “Corona” again, at the same time, its pledge to continue supporting the ailing economy, as a result of the pandemic, and to keep borrowing costs at record low levels, to support the eurozone economy in Confronting the repercussions of the Corona pandemic.
The bank’s board of governors, which consists of 25 members, stated that it would keep the main refinancing rate at 0%, the lowest level ever, and that it would keep the bond purchase program at 1.58 trillion euros ($ 2.25 trillion).
He stated that the program is scheduled to continue until the end of March 2022, at the very least.
The Frankfurt-based bank also kept the deposit rate at negative 0.5% and the marginal lending rate at positive 0.25%.
After policymakers last December extended their massive bond-buying program until next year, they want to transfer responsibility to governments until activity resumes normally.
But they said they were ready to provide more support to the economy, if needed.
“In all cases, the bank’s board of governors will initiate net purchases, until the Corona crisis is confirmed,” the central bank said in a statement.
The euro rose slightly against the US dollar, after the central bank announcement.
It is expected that the difficulties facing exporters will intensify, in light of the new closures and slow vaccination against the Corona virus in the nineteen countries that use the euro and the strength of the currency, which is a challenge to the bank’s expectations for a strong recovery, starting from the second quarter of the year.
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