The European Central Bank (ECB) left its main refinancing rate unchanged at 0.00 percent on Thursday, as widely expected. Its interest rates on the marginal lending facility and the deposit facility were also left unchanged at 0.25 percent and -0.50 percent, respectively.

In its policy statement, the ECB said:

• Governing Council will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a rollout of vaccines and developments in the exchange rate;
• New round of macroeconomic projections in December will allow thorough reassessment of economic outlook and the balance of risks; on basis of this updated assessment Governing Council will recalibrate its instruments, as appropriate, to respond to unfolding situation and to ensure that financing conditions remain favourable to support the economic recovery and counteract negative impact of the pandemic on projected inflation path;
• Repeats that Governing Council expects key ECB interest rates to remain at their present or lower levels until it has seen inflation outlook robustly converge to level sufficiently close to, but below, 2% within its projection horizon;
• Purchases under PEPP will continue to be conducted in a flexible manner over time, across asset classes and among jurisdictions until at least the end of June 2021;
• Governing Council will reinvest principal payments from maturing securities purchased under PEPP until at least the end of 2022; future roll-off of PEPP portfolio will be managed to avoid interference with the appropriate monetary policy stance;
• Net purchases under asset purchase programme (APP) will continue at a monthly pace of EUR20 billion, together with purchases under the additional EUR120 billion temporary envelope until the end of the year;
• Governing Council will also continue to provide ample liquidity through its refinancing operations.