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ECB Keeps Policy on Hold ahead of June Showdown

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By Reuters Staff

3 Min Read

 

By Reuters Staff

Reuters Staff

3 Min Read

 

3 Min Read

 

 

FRANKFURT, April 22 Reuters The European Central Bank left its ultraeasy policy unchanged as expected on Thursday, providing the pandemicstricken currency bloc with record stimulus even as an accelerating vaccination campaign raises hopes for a rebound.

After raising its support just six weeks ago, the ECB has capped a rise in yields, pinning borrowing costs near record lows to help a battered economy stay afloat until lockdown measures can be clawed back.

Even as it kept the pace of money printing steady, the ECB maintained its longstanding guidance that stimulus could be expanded further, as needed, and a record low deposit rate could still go lower.

The Governing Council stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry, the ECB said in a statement.

The ECBs next crucial decision is due on June 10, when policymakers have to decide whether to let emergency bond purchases fall after a surge this quarter.

The current wave of the pandemic appears to have plateaued in Europe, the pace of vaccinations is accelerating and the European Unions 750 billion euro recovery fund has cleared a key court challenge, all pointing to a rapid recovery and space for the ECB to ease back on support.

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