The European Central Bank has not changed its monetary policy, pledging to keep borrowing costs at historically low levels to support the euro area economy in the face of the COVID-19 pandemic.
The central bank's main refinancing operations, marginal lending facilities, and deposit facilities will remain at 0.00%, 0.25%, and -0.50%, respectively. To support economic recovery, the European Bank enhanced its massive stimulus program in December. The pandemic emergency purchase program (PEPP) has been extended until March 2022, with a total of €2.25 trillion in bond purchases. This has allowed eurozone governments to secure cheaper borrowing costs in public markets.
