- Deposit facility rate -50%
- Main refinancing rate 0.00%
- Marginal lending facility 0.25%
- PEPP to end in March, but APP expanded
- APP will continue at a monthly pace of €20 billion, but then strengthened to €40 billion in Q2 and €30 billion in Q3
- GC expects net purchases to end shortly before it starts raising rates
- Full statement here
All main metrics were expected to be unchanged and that is the case. Purchases were in focus and the extension of the APP program is not as large as some were talking about (€50 billion). All eyes will be on the press conference now to see why those amounts were chosen and why Q2 and Q3 was the time to implement them. EURUSD slightly higher at the moment as this is arguably more hawkish than the meeting could have been with a mild APP extension. All ears and eyes to the presser now.
