Summary
- ECB will ensure smooth liquidity conditions and implement the sanctions decided by the European Union and European governments. (New)
- Monthly net purchases under the APP will amount to €40 billion in April, €30 billion in May and €20 billion in June. The calibration of net purchases for the third quarter will be data-dependent and reflect its evolving assessment of the outlook. If the incoming data support the expectation that the medium-term inflation outlook will not weaken even after the end of its net asset purchases the third quarter then from October onwards, the Governing Council will conclude net purchases under the APP in the third quarter. (Change)
- The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50%, respectively. (No Change)
- Any adjustments to the key ECB interest rates will take place sometime after the end of the Governing Council’s net purchases under the APP and will be gradual. The path for the key ECB interest rates will continue to be determined by the Governing Council’s forward guidance and by its strategic commitment to stabilize inflation at 2% over the medium term. (New)
- Discontinue net asset purchases under the Pandemic Emergency Purchase Programme (PEPP) at the end of March 2022. (No Change)
- Reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2024. (No Change)
- In the event of renewed market fragmentation related to the pandemic, PEPP reinvestments can be adjusted flexibly across time, asset classes and jurisdictions at any time. Net purchases under the PEPP could also be resumed, if necessary, to counter negative shocks related to the pandemic. (No Change)
- Extend the Eurosystem repo facility for central banks (EUREP) until January 15, 2023. EUREP will therefore continue to complement the regular euro liquidity-providing arrangements for non-euro area central banks. Together, these form a comprehensive set of backstop facilities to address possible euro liquidity needs in the event of market dysfunctions outside the euro area that could adversely affect the smooth transmission of the ECB’s monetary policy. (New)
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