ECB leaves rates unchanged, keeps policy even as EU economic upturn gains steam
FRANKFURT — The European Central Bank hinted at the beginning of the end of its massive monetary stimulus, but stopped short of a significant move to rein it in, brushing off concerns that its policies are excessive as the eurozone’s EUR10 trillion ($10.542 trillion) economy picks up speed.
The ECB’s decision on Thursday to keep its foot on the gas underscores the divergence between the world’s two most powerful central banks. Federal Reserve officials have indicated recently that the U.S. central bank is ready to raise interest rates again as soon as next week. Investors will seek signs of the Fed’s direction on Friday when the Labor Department issues its February jobs report.
The ECB stood pat ahead of elections in the Netherlands, France and Germany, eurozone countries where antieuro parties are expected to make gains.
ECB President Mario Draghi said bank governors hadn’t discussed how they might wind down their EUR2.3 trillion bond-purchase program, known as quantitative easing. The central bank will continue to buy eurozone bonds valued at at least EUR60 billion a month through the end of this year, he said, and it could accelerate the pace of purchases or cut interest rates again if the economic outlook darkens.
