Fundamental Comment

ECB holds interest rates, ends QE in December

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The European Central Bank decided on Thursday to leave interest rates at 0.00 percent, moving in line with forecasts, and announced the end of stimulus program in December.

The ECB voted to ending its QE program in December, where the pace of asset purchases would be halved to $15 billion per month from the current 30 billion per month.

Another key move was the ECB’s decision hold interest rates unchanged until at least the middle of next year.

“The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019 and in any case for as long as necessary to ensure that the evolution of inflation remains aligned with the current expectations of a sustained adjustment path,” the ECB said.

As of 12:03 GMT, the euro dropped to $1.1728, probably because the ECB has also promised not to raise interest rates for some time.

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