(RTTNews.com) - As expected, the European
Central Bank left interest rates and its
quantitative easing programme unchanged
despite some calls for tightening monetary
policy.
The ECB's monthly bond-buying program will run
until at least December, slowing to 60 billion
euros ($63 billion) in April from the current 80
billion euros.
The Governing Council left the main refinancing
rate at 0%, while the rate on deposits parked
overnight at the bank remains at minus 0.4%.
The rate on the bank's marginal lending facility
remains at 0.25%.
ECB president Mario Draghi foreshadowed this
decision in December by vowing bond purchases
will be extended until at least the end of 2017.
Headline inflation has reached the bank's lone
mandate of 2 percent for the first time since
early 2013, but core inflation, stripping out
volatile energy prices, remains too weak to
remove accommodation.
The ECB "stands ready to increase the
programme in terms of size and/or duration" if
its modest inflation expectations are not met.
Analysts say the ECB was also mindful of
political uncertainties in Europe, with right-wing
Euro-skeptic factions gaining momentum in
France and the Netherlands.
Draghi faces questions from reporters at 8:30
am ET.