The European Central Bank left interest rates unchanged on Thursday after lowering them as part of broad stimulus package in the previous policy session as President Mario Draghi is set to defend the bank's independence in the wake of intense criticism from Germany over its ultra loose policy stance.
The 25-member Governing Council, led by Draghi, left the benchmark interest rate - the refi, unchanged at a record low zero percent, after unexpectedly cutting it by five basis points in March.
The deposit rate was retained at -0.40 percent, following a 10 basis points reduction last month. The marginal lending facility rate was kept at 0.25 percent, after a five basis point-cut.
ECB President Draghi is set to hold his customary press conference at 8.30 am ET in Frankfurt.
Draghi is widely expected to reiterate the effectiveness of the stimulus measures already adopted and signal that more support is still possible.
"In the absence of any new policy measures, attention at the press conference is very likely to be mainly focused on the recent war of words, with many German observers - so-called 'experts' and politicians - having started a new round of verbal attacks on the ECB and its current monetary policy stance," ING Bank economist Carsten Brzeski said this week.
"The ECB will try to keep a very matter-of-fact tone in this debate, but will remain very tough on the content, probably referring to Article 130 of the Treaties, which is very clear on the ECB's independence...the German war of words has very little chance of succeeding."
In March, the ECB expanded its asset purchase programme, announced a new round of longer-term refinancing operations and decided to include investment grade non-bank debt in its list of eligible assets for purchases.
German Finance Minister Wolfgang Schaeuble has been one of the sharpest critics of the ECB stimulus measures, blaming the central bank for the rise of the populist parties such as the anti-euro and anti-immigrant AfD in Germany.
Criticism came as ECB's zero and negative interest rates increasingly worry the traditionally conservative German savers and eat into bank profits.
However, Bundesbank Chief Jens Weidmann has been vocal in defending ECB independence. "It's not unusual for politicians to have opinions on monetary policy, but we are independent," he said last week in an interview to the Financial Times.
"The ECB has to deliver on its price stability mandate and thus an expansionary monetary policy stance is appropriate at this juncture regardless of different views about specific measures."
While Draghi may continue to signal that more stimulus is possible, economists suggest the bank may have already neared its limits.
"As growth remains weak and inflation far below target, we still see the Bank lengthening its QE programme in time," Capital Economics economist Jennifer McKeown said last week.
"But while we would not rule out more radical policies such as helicopter money, the conservative ECB is highly unlikely to take such a bold step anytime soon, implying that the inflation target will remain out of reach."
Headline inflation has been below the ECB's target of 'below, but close to 2 percent' since early 2013.
In March, inflation was zero following a negative inflation rate in February. Meanwhile, core inflation accelerated to 1 percent.
Other economic data give mixed signals. Industrial production eased sharply, while retail sales unexpectedly rose and unemployment dropped in February.
This month, the International Monetary Fund has trimmed its euro area growth projection for this year to 1.5 percent and the forecast for the next year to 1.6 percent. The IMF also lowered its growth projections for the big four of the currency bloc - Germany, France, Italy and Spain.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.