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ECB leaves rates unchanged as expected

Published 22/10/2015, 13:11
© Reuters. The headquarters of the European Central Bank (ECB) are pictured in Frankfurt

VALLETTA (Reuters) - The European Central Bank left interest rates unchanged on Thursday at a meeting in Malta, holding them at record lows as it prints money to lift the economy and raise inflation.

The decision to leave the cost of borrowing unchanged was widely expected after the ECB cut rates to rock-bottom levels over a year ago and repeatedly said they had hit "the lower bound".

At Thursday's meeting, the ECB left its main refinancing rate, which determines the cost of credit in the economy, at 0.05 percent.

It also kept the rate on bank overnight deposits at -0.20 percent, which means banks pay to park funds at the central bank, and held its marginal lending facility - or emergency overnight borrowing rate for banks - at 0.30 percent.

© Reuters. The headquarters of the European Central Bank (ECB) are pictured in Frankfurt

Markets now turn their attention to ECB President Mario Draghi's 1230 GMT news conference and whether the bank will make any adjustments to its 60 billion euro per month asset purchase programme.

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