December 3 2015

Dec. 3, 2015 ( – The European Central Bank announced today that the interest rate on the main refinancing operations and the interest rate on the marginal lending facility will remain unchanged at 0.05% and 0.30% respectively, while the Governing Council decided that the interest rate on the deposit facility will be decreased by 10 basis points to -0.30%.

The central bank’s QE program will be extended until at least March 2017 and will now also include regional and local government debt, but policy makers refrained from expanding the size of asset purchases keeping the pace at 60 billion euro per month, which has disappointed euro bears.

The single currency registered its second largest one-day move for the year, appreciating by almost 2% against the US dollar in today’s trading session.

At the press conference following the announcement, the ECB President said: “Today’s decisions were taken in order to secure a return of inflation rates that are below or close to 2 percent and therefore to anchor medium-term inflation expectations. We are doing more because it works.”