ECB to Keep Rates Unchanged Through at Least Summer of 2019

The European Central Bank (ECB) has decided to keep its main refinancing rate at 0% and the deposit facility rate at -0.4%, maintaining its current monetary policy stance. The ECB plans to keep these rates unchanged at least through the summer, with the possibility of a rate hike in the autumn if inflation picks up. The ECB will continue its quantitative easing measures by reinvesting maturing debt beyond the first rate increase. This approach is seen as positive for bonds, indicating a dovish tilt in policy, with low rates expected to persist for the foreseeable future.

What decision did the ECB make regarding the main refinancing rate?

• They decreased it to -0.5%

• They abolished it completely

• They left it unchanged at 0%

• They increased it to 0.5%

Until when does the ECB plan to keep the rates unchanged?

• Until the next financial crisis

• Until inflation reaches 5%

• At least through the summer

• Until the end of the year

What is the ECB's stance on a potential rate hike in the autumn?

• They have ruled it out completely

• They plan to decrease rates instead

• They are open to it

• They have already implemented it

What action has the ECB taken regarding their bond holdings?

• They have transferred them to another entity

• They have stopped adding to them

• They have doubled their holdings

• They have started selling them

What does the ECB's continued reinvestment past the first rate increase indicate?

• An increase in interest rates

• A dovish policy stance

• A shift to a hawkish policy

• A complete stop to quantitative easing