ECB Holds Rates Steady, Announces Strategic Policy Review

The European Central Bank (ECB) has maintained its main refinancing rate at 0% and the deposit facility rate at -0.5%, a decision anticipated by the market. The ECB plans to keep rates at current or lower levels until inflation approaches its target. Inflation expectations for the next 5 to 10 years are around 1.3%, below the ECB's 2% target. The ECB is conducting its first strategic policy review since 2003, taking advantage of stable manufacturing data. Market reactions have been minimal, with the euro slightly weaker against the dollar and two-year yields remaining flat.

What is the current main refinancing rate set by the ECB?

• 0.5%

• 0%

• 1%

• -0.5%

Until when does the ECB plan to maintain the current or lower rates?

• Until the next fiscal year

• Until the inflation goal is closer

• Until GDP growth reaches 3%

• Until the unemployment rate decreases

What is the inflation expectation for the next 5 to 10 years?

• 2%

• 0.5%

• 3%

• 1.3%

When was the last time the ECB conducted a strategic policy review before the current one?

• 2010

• 2003

• 1999

• 2015

How did the euro react to the ECB's announcements?

• It remained unchanged

• It strengthened slightly

• It strengthened significantly

• It weakened slightly