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Newsbreak: ECB to Restart QE from November, Cuts Deposit Rate to -0.5%

Published 12/09/2019, 12:23
Updated 12/09/2019, 13:06
© Reuters.

© Reuters.

Investing.com -- The European Central Bank said Thursday it will restart its purchases of government bonds in an attempt to support a slowing eurozone economy. It also cut its deposit rate by 10 basis points to a new record low of -0.5% and said it would introduce a new regime to spare banks some of the pain of negative rates.

Key decisions:

  • Deposit rate cut to -0.5% from -0.4%; first cut since March 2016

  • Main refinancing rate left unchanged at 0%

  • TLTRO pricing to be linked to deposit rate for banks that meet lending criteria

  • Bond purchases to start in November at a rate of 20 billion euros ($22 billion) a month and to run "for as long as necessary".

  • EUR/USD at $1.0969 vs $1.1023 immediately before the announcement.

Watch the European Central Bank press conference live in the video link below. The press conference is scheduled to begin at 12:30 GMT.

Newsbreak: ECB to Restart QE from November, Cuts Deposit Rate to -0.5%

Latest comments

Negative interest rates in continental Europe indicate these economies are not in good shape and there is a strong liklihood of worse to come. Brexit shouting in the UK distracts us from seeing what is happening over there, particularly the very high and persistent youth unemployment. I appeal to our youth to research youth unemployment in the EU before declaring such as Brexit will destroy my life.
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