European Central Bank stays the course on interest rates
The European Central Bank said Thursday it would keep its key interest rates unchanged, and continue its emergency €1.85 trillion bond-buying program through at least March of next year.
Why it matters: The ECB appears to be signaling a longer timeline for maintaining its current level of market support than the Fed has in the U.S.
- Investors are looking for clues as to which central bank(s) may take the lead on tapering — and how that could affect the others.
State of play: Reuters reported in May that ECB board members were headed toward a "showdown" at the June 10 meeting over continuing the emergency bond purchases.
- Ultimately, the ECB "didn't look to hedge its statements, or look to pull back on support anytime soon," BMO's Yung-Yu Ma tells Axios.
- The ECB expects to make purchases under the emergency program in the coming quarter "at a significantly higher pace than during the first months of the year," according to the statement.