The European Central Bank once again kept the base interest rate, margin rate and deposit rate at 0%, 0.25% and minus 0.5%, respectively. The zero base rate remains unchanged from March 2016. It is noted that the regulator expects to keep key interest rates at the current level or below until inflation reaches 2%. At the same time, according to the ECB Governing Council, inflation stabilization at the target level can be achieved in the medium term. Also, the European Central Bank noted that it will continue the asset repurchase program (APP) in the amount of 20 billion euros per month. Moreover, reinvestment of payments on securities purchased under this program will take place long after the start of the phase of raising key interest rates. The regulator will also continue the PEPP bond buyback program in connection with the pandemic (totaling 1.85 trillion euros at least until the end of March 2022). The reinvestment of the main payments on the securities purchased under the PEPP is planned to continue until at least the end of 2023. The third series of the long-term liquidity program for European banks, TLTRO III, will also continue, which is designed to support bank lending to firms and households.
