European Central Bank keeps interest rates constant

By Muhammed Ali Gurtas</p> <p>ANKARA (AA) – The European Central Bank (ECB) on Wednesday decided to keep key interest rates constant.</p> <p>The interest rate on the main refinancing operations was kept at 0.00%, according to a statement from the ECB's Governing Council.</p> <p>The bank's interest rates on the marginal lending facility and the deposit facility continue to stand at 0.25% and minus 0.40%, respectively.</p> <p>Speaking at a news conference in Frankfurt, the bank's head Mario Draghi said: &quot;We continue to expect them to remain at their present levels at least through the end of 2019.&quot;</p> <p>&quot;[… ] And in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term,&quot; he said.</p> <p>Draghi said the ECB's Governing Council stands ready to adjust all of its instruments, as appropriate, to ensure that inflation continues to move towards the council’s inflation aim in a sustained manner.</p> <p>In February, the EU's annual inflation rose to 1.6%, up from 1.5% in January — falling in seven member states, remained stable in one, and rose in 19, compared to January.</p> <p>Since 2008, the lowest annual inflation rate in the EU was in January 2015 at minus 0.5% — when prices were in fact dropping — and the highest was seen in July 2008, at 4.4%.</p> <p> </p> <p>Pointing at continuing slower growth momentum, he said: &quot;While there are signs that some of the idiosyncratic domestic factors dampening growth are fading, global headwinds continue to weigh on euro area growth developments.&quot;</p> <p>The 28-member bloc's GDP growth performance slowed down in 2018 compared to the previous year, as the annual growth rate was 1.9% last year versus 2.4% in 2017.</p> <p>&quot;The persistence of uncertainties, related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets, is leaving marks on economic sentiment.</p> <p>&quot;At the same time, further employment gains and rising wages continue to underpin the resilience of the domestic economy and gradually rising inflation pressures,&quot; Draghi said.