ECB: "risks still tilted to the downside" - UOB

Analysts at UOB Group explained that the ECB left all benchmark interest rates on hold following the latest meeting with the main refi rate remaining at 0.0% and the deposit rate at -0.40%. 

Key Quotes:

"According to the statement, the bank continues to expect that interest rates will be held at present levels or lower for an extended period of time and well past the horizon of net asset purchases. The ECB also made no changes to the quantitative easing programme which, according to current guidance, will continue at a rate of EUR60bn until the end of 2017."

"The statement reiterated that the bond-purchase programme would be extended beyond the end of 2017 if necessary. In his press conference, ECB President Draghi was generally more optimistic surrounding the outlook for growth and he stated that the risks to the outlook had moved closer to balance while the downside risks have diminished."

"He also expressed optimism surrounding a range of growth indicators and pointed to the strength of recent PMI reports. Nevertheless, he still described risks as being tilted to the downside and that there were important areas of fragility within the Eurozone economy. He also stated that there was agreement that risks are still tilted to the downside."