Monetary policy decisions, June 2017

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Series Details 08.06.17
Publication Date 08/06/2017
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Governing Council decisions

The Governing Council of the European Central Bank, the main decision-making body of the ECB, usually meets every two weeks.

Every six weeks, it takes its monetary policy decision, i.e. setting the key interest rates for the euro area.

At the other meetings, the Governing Council takes decisions related to other tasks, such as payment systems, financial stability, statistics, banknotes, legal affairs, and banking supervisionReport of the decisions taken at the monthly meeting of the Governing Council of the European Central Bank in Tallinn on the 8 June 2017.

The Governing Council decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility would remain unchanged at 0.00%, 0.25% and -0.40% respectively.

The Governing Council expected the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.

Regarding non-standard monetary policy measures, the Governing Council confirmed that the net asset purchases, at the current monthly pace of €60 billion, were intended to run until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council saw a sustained adjustment in the path of inflation consistent with its inflation aim. The net purchases would be made alongside reinvestments of the principal payments from maturing securities purchased under the asset purchase programme. If the outlook became less favourable, or if financial conditions became inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stood ready to increase the programme in terms of size and/or duration.

In a Commentary Euro|Topics wrote 'ECB chief Mario Draghi has made it clear that the ECB has no intention of lowering interest rates even further after years of an expansive monetary policy. The benchmark interest rate will, however, be left at its current level of zero percent for the time being. Some commentators criticise the central bank's lack of resolve. Others say its cautious approach makes sense'.

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Related Links
Euro|Topics: Debates, June 2017: Change of course in ECB's interest rate policy?
ECB: Governing Council Decisions
ECB: Press Release, 08.06.17: Introductory Statement at Press Conference of the Governing Council, 08.06.17
EurActiv, 08.06.17: ECB to keep taps open as economic outlook uncertain
Politico, 08.06.17: Mario Draghi prepares for eurozone’s brighter days

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