ECB Drops Guidance About Further Rate Cuts

The ECB decided to keep interest rates unchanged, maintaining the refi rate at 0%, the marginal lending facility at 0.25%, and the deposit rate at negative 40 basis points. The focus was on forward guidance, as the ECB removed the reference to potentially lower rates, signaling a shift in policy. The market reacted with a slight positive movement in the euro, but overall, the response was cautious. Expert analysis suggests that the ECB's decision aligns with improving growth numbers, and the market is expected to wait for further clarification from the ECB's press conference.

What is the significance of the ECB's forward guidance around interest rates?

What was the previous guidance regarding interest rates before the recent announcement?

What does the term 'QE' refer to in the context of the ECB's monetary policy?

How did the market react to the ECB's decision to keep rates unchanged?

What factors contributed to the belief that the ECB would not lower rates further?