European Central Bank left its key interest rates and massive stimulus unchanged on Thursday, citing a highly uncertain outlook amid a resurgence in the Covid-19 pandemic, and hinted at a move in December when the latest set of macroeconomic projections will be available.
The Governing Council, led by ECB President Christine Lagarde, left the main refi rate unchanged at a record low zero percent and the deposit rate was kept at -0.50 percent, in line with economists' expectations. The lending rate was left unchanged at 0.25 percent.
The bank made changes to its policy statement this time and had a fresh introductory paragraph.
Policymakers will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a roll-out of vaccines and developments in the euro exchange rate as the risks remain clearly tilted to the downside, the bank said.
"The new round of Eurosystem staff macroeconomic projections in December will allow a thorough reassessment of the economic outlook and the balance of risks," the ECB said.
"On the basis of this updated assessment, the Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favorable to support the economic recovery and counteract the negative impact of the pandemic on the projected inflation path."
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