European Central Bank keeps rates unchanged

The European Central Bank has kept its interest rates at historically low levels as part of its forward guidance pledge that rates will not rise unless inflation spikes.

The Governing Council kept the interest rate on the main refinancing operations at 0.5 per cent, interest rates on the marginal lending facility at 1 per cent, and interest rates on the deposit facility at 0 per cent.

ECB president Mario Draghi will discuss the decision at a press conference at 2:30 on Thursday afternoon.

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Strong data out of the eurozone in recent months suggested the area is finally out of recession, which prompted the market to price in an interest rate rise ahead of the Bank’s forecast.