The high inflation in the euro area is heating up the debate.
(Photo: dpa)
Dusseldorf, Frankfurt As expected, the European Central Bank (ECB) is leaving interest rates at the previous level. It is also sticking to its plan to gradually reduce its bond purchases this year. The PEPP purchase program launched during the pandemic is scheduled to expire at the end of March. The central bank announced this after its council meeting on Thursday in Frankfurt.
It left the deposit rate at the previous level of minus 0.5 percent and the key interest rate at zero percent. The older bond purchase program APP is to be increased from the current 20 to 40 billion euros per month from April. This level should then gradually fall back to 20 billion euros a month in October.
Most experts had not expected any changes in advance. What is eagerly awaited, however, is what the head of the central bank, Christine Lagarde, will say at her press conference about the sharp increase in inflation in the euro area and speculation about possible interest rate hikes later this year.
