FT/Claire Jones & Mehreen Khan/06-08-17
The European Central Bank took a first small step towards scaling back ultraloose policy when it said it would not cut its record-low interest rates any further, as it seeks to adjust to a surprisingly strong eurozone recovery.
In closely watched forward guidance published after a meeting in Tallinn on Thursday, the ECB omitted a reference made in earlier statements to cutting rates to “lower levels” if warranted.
The bank also confirmed that it would continue its €60bn a month asset purchase programme until the end of the year or beyond if necessary and left interest rates unchanged at 0 per cent for the base rate and minus 0.4 per cent for the bank deposit rate.
