The European Central Bank on Thursday maintained a dovish stance, which it will continue to take until inflation reaches its 2% target.
EURUSD is up 0.135%.
The ECB said interest rates are likely to either be kept unchanged or reduced until inflation hits the 2% target for a considerable period of time, and that consumer prices grow at a steady rate over the medium term.
Inflation may hover above the target, but the ECB said this will only be a “transitory period.” Headline inflation is expected at 1.9% this year, before decelerating to 1.5% in 2022 and 1.4% in 2023.
The ECB also committed to a bond-buying program of 1.85 trillion euros or $2.2 trillion, in line with its Pandemic Emergency Purchase Program, until March 2022.
Interests rates were maintained with the main deposit facility at -0.5%, the benchmark refinancing rate at 0%, and the marginal lending facility at 0.25%.
The ECB also committed to keeping a “persistently accommodative” monetary policy stance.