European Central Bank announces interest rate decision

The European Central Bank (ECB) did not change interest rates in line with market expectations, despite high inflation amid the increased uncertainty due to the Russia-Ukraine war.

Ended bond purchases
The expectation was that the ECB would keep the interest rate simple, but the bond purchase decision would be followed. The ECB kept interest rates steady in line with expectations and confirmed its plan to end bond purchases.

Policy rate: 0
In the statement made by the ECB, it was reported that the ECB Governing Council decided not to change the interest rates at its today's meeting, keeping the policy rate at zero, the deposit rate at minus 0.50 percent and the marginal funding rate at 0.25 percent. .

Asset purchases will end in the third quarter
In the statement, it was stated that asset purchases will continue as 40 billion euros per month in April, 30 billion euros per month in May and 20 billion euros in June under the Asset Purchase Program, and that asset purchases will be terminated in the third quarter.

"The war and the associated uncertainty greatly affect the confidence of companies and consumers"
"The war and the associated uncertainty greatly affect the confidence of companies and consumers. Supply cuts lead to shortages of new materials and goods for production. Rising energy and commodity prices reduce demand and hinder production," the statement said. expressions were used.

Emphasizing the intensification of inflationary pressures in most sectors, the statement said that inflation has increased significantly mainly due to the sharp increase in energy costs and will remain high in the coming months.