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 is the significance of the ECB's decision to stop adding to their bond holdings?

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How does the ECB's policy affect the bond market according to the text?

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