ECB announces their first policy decision for the new year - 21 January 2021
- Prior decision
- Deposit facility rate -0.50%
- Main refinancing rate 0.00%
- Marginal lending facility 0.25%
- ECB expects the key rates to remain at their present or lower levels until inflation outlook robustly converge to a level sufficiently close to, but below, 2%
- ECB will continue the purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of €1,850 billion
- The purchases under the PEPP will be conducted to preserve favourable financing conditions over the pandemic period
- The envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation
- ECB stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner
- Full statement
The details and the language in the statement is pretty much a reiteration of their current stance and is no different from after the "recalibration" in December.
The euro is up to session highs against the dollar though, with EUR/USD climbing up from 1.2144 to 1.2155 on the announcement.
That said, the move could just be an extension of the technical picture on the break above the 200-hour moving average @ 1.2134 with buyers looking to now contest the high yesterday closer to 1.2158.
Other than that, there really isn't much else to scrutinise from the statement.
