EUROPEAN UNION (OBSERVATORY) – The European Central Bank (ECB) has kept its monetary policy unchanged, and ECB President Mario Draghi is expected to reduce fears about a weakening growth in the eurozone, Reuters reports.
According to the ECB decision, the deposit rate (currently the instrument of the bank’s primary interest rate) will remain at -0.4%, while the main refinancing rate will remain unchanged at 0%.
Economists polled by Reuters still expect that the bond buying program will end this year, and the rate will grow only in the second quarter of 2019, but some analysts have already started to note the possible risks of postponing the tightening period of the policy.
As they wrote “Vesti.Ekonomika”, analysts assumed that the European Central Bank will not change its monetary policy at the meeting on April 26.
The preservation of the ECB’s monetary policy is explained by the slowdown in the euro area economy. In general, markets are waiting for the completion of the program of buying up assets from the regulator in 2018, so any strong slowdown in the region’s economic growth in the future may lead to the central bank postponing the curtailment of the program for an even later period.
From the head of the ECB Mario Draghi are waiting for that at a press conference following the meeting he will talk about the reasons for the growth of risks for the economy of the eurozone. The politician can also signal that the ECB will raise rates only next year.