The European Central Bank is about to keep interest rates unchanged
at record lows
Thursday – 22 Rabi’ al-Awwal 1443 AH – 28 October 2021 AD
Brussels: «Middle East Online»
The European Central Bank is expected to leave interest rates unchanged at record lows, and no new monetary policy announcements are expected at the meeting of the bank’s top decision-making body today (Thursday).
European Central Bank President Christine Lagarde made it clear that the future of the pandemic emergency purchase program, which buys securities for the private and public sectors, will not be decided until the December board meeting, according to the German news agency.
The programme, which was launched in March 2020 with the pandemic sweeping the 19-member eurozone, aims to support the bloc’s economy.
But eurozone inflation accelerated to 4.3% year-on-year in September, well above the European Central Bank’s annual inflation target of 2%.
Investors will be watching for any comments made by Lagarde on the inflation situation and rising energy prices in Europe.
There are also concerns about slowing growth given a new wave of coronavirus cases on the continent and continuing supply chain disruptions.
The European Central Bank will almost certainly keep the benchmark refinancing rate at zero.