7th March 2014

ECB main interest rate unchanged

ECB president Mario Draghi announced on 6 March the ECB´s decision to keep the main interest rate unchanged, at 0,25%, for the fourth month running. As there are positive signs of economic recovery, he added, the ECB does not plan any further activities in this sense and plan to keep the main interest rate at present or lower level in the foreseeable future. Some analysts predicted that ECB would announce end of “sterilisation” measures, which balance today the ECB´s asset purchases by withdrawing the amount of money spent on purchases from the economy. End of sterilisation would mean additional money for the economy and could thus boost growth, similarly to the Fed´s quantitative easing. The ECB, however, does not plan to change its sterilisation policy. Draghi also announced, that ECB expects inflation to rise to 1,7% by 2016, from 0,8% in February 2014.

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Members of the American Chamber of Commerce in the Czech Republic