European Central Bank rate decision - 14 Dec 2017

  • Main refinancing rate remains at 0.00%
  • Marginal lending facility remains at 0.25%
  • Deposit facility rate remains at -0.40%
  • Asset purchase target (QE) remains at EUR 30bn from Jan 2018 to Sept 2018

As expected, all unchanged. Here are the headlines:

  • Sees QE running until Sept 2018 or beyond if needed
  • QE can be increased in size, duration if outlook worsens
  • Expects key interest rates to remain at present levels for an extended period of time, well past the horizon of QE
  • Draghi will comment on the considerations underlying the decision later at the press conference

Nothing substantial from the ECB statement. EUR/USD slightly lower on the decision by about 10 pips to 1.1826 now.

Update (1252 GMT): EUR/USD rightfully unphased, now at 1.1832. Not expecting any major movements up until the presser later.

As I mentioned, just look out for the Q&A with Draghi later and the details on the ECB projections.

You can view the Q&A here.