The European Central Bank (ECB) announced today that it would maintain its key interest rates at their present levels. The main refinancing rate remains at 0.00%, the marginal lending facility at 0.30%, and the deposit facility at -0.40%.

In a press conference following the decision, ECB President Mario Draghi stated that the Governing Council is closely monitoring economic developments and is prepared to use all available instruments within its mandate to ensure price stability. He indicated that the ECB is particularly concerned about the persistence of low inflation and the potential impact of global economic uncertainty on the Eurozone.

Draghi also announced that the ECB’s staff has revised downward its growth and inflation forecasts for the Eurozone. The ECB now expects Eurozone GDP to grow by 1.4% in 2015, 1.7% in 2016 and 1.8% in 2017. Inflation is projected to remain below the ECB’s target of close to but below 2% over the forecast horizon.

The ECB’s Governing Council discussed a range of options for further easing monetary policy, including:

• Increasing the size of the ECB’s asset purchase program (quantitative easing).
• Extending the duration of the asset purchase program.
• Cutting the deposit rate further into negative territory.
• Providing further targeted longer-term refinancing operations (TLTROs) to banks.

Draghi emphasized that the ECB is ready to act if necessary to achieve its price stability objective. He added that the ECB is also calling on governments to implement structural reforms and fiscal policies to support economic growth.