ECB Keeps Stimulus Unchanged in Dhaghi’s Final Act

The European Central Bank (ECB) has decided to keep its main refinancing rate unchanged at negative zero percent and its deposit facility at negative 50 basis points. The ECB will continue bond purchases as needed, maintaining current or lower rates until inflation nears its target. Starting in November, the ECB will purchase €20 billion in bonds monthly. Mario Draghi is expected to call for fiscal support from governments, particularly Germany, during a press conference. The transition to Christine Lagarde's leadership raises questions about future bond purchase strategies, including potential shifts towards private bonds or changes to the capital key.

What is the significance of November 1st in relation to the ECB?

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What is the concern regarding the types of bonds that Madame Lagarde will buy?

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