ECB Maintains Benchmark Rate at 0.05%; Deposit Facility Remains at (0.2%) (FXE)

(Updated - October 2, 2014 7:47 AM EDT)

ECB leaves benchmark rate unchanged at 0.05%. Deposit facility unchanged a minus 0.2%..

ECB Statement:

At today’s meeting, which was held in Naples, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.

Notable headlines from press conference:

• Draghi: The purchase programmes will last for at least 2 years. Together with the TLTROs, they will have a sizeable impact on balance sheet.
• Draghi: The measures will support specific market segments that play a key role in the financing of the economy.
• Draghi: They will enhance functioning of the transm. mechanism, facilitate credit provision and create positive spillovers to other markets
• Draghi: Our asset purchases should ease the monetary policy stance more broadly and strengthen our forward guidance
• Draghi: They will reinforce fact of significant and increasing differences in the monetary policy cycle between major advanced economies
• Draghi: With the monetary accommodation already in place, they will underpin a firm anchoring of medium to long-term inflation expectations
• Draghi: The Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate, if necessary
• Draghi: Monetary policy contributes to supporting economic activity. However other policy areas need to contribute decisively.
• Draghi: The legislation and implementation of structural reforms clearly need to gain momentum in several countries
• Draghi: The Stability and Growth Pact should remain the anchor for confidence in sustainable public finances
• Draghi: Programme is oriented towards boosting lending to SMEs
• Draghi: We will not buy structured assets although we accept them as collateral
• Draghi: We decided to include GR and CY assets in the programme, but with extra risk measures
• Draghi: A prolonged period of too low inflation is harmful and that's why the measures were taken.
• Draghi: Effects of the many measures we took since June will unfold over time
• Draghi: There is no great bargain here, but we know our measures are much more effective if there are reforms
• Draghi: The recovery is weak, fragile and uneven
• Draghi: No programme, no purchases.
• Draghi: The potential universe of purchasable assets is 1 trillion
• Draghi: Despite all the measures already taken, the GC still stands ready to take additional measures.
• Draghi: Now it is implementation time for reforms

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