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Markets now turn their attention to ECB President Mario Draghi's
1330 GMT news conference.
Facing low inflation and weak growth, the ECB last month
extended its 2.3 trillion euro ($2.45 trillion) debt purchase
program until the end of the year, promising substantial
accommodation and extended market presence.
Recent data have however surprised on the upside with inflation
hitting a three year high and euro zone business growth at its
fastest in more than five years, suggesting unexpected
resilience in the 19-member currency bloc and indicating that
stimulus is bearing fruit.
Indeed, the vast majority of economist polled by Reuters expect
the ECB to stay put, at least in the first half of the year,
having done enough for growth and preferring to sit on the
sidelines while France, Germany, the Netherlands and possibly
Italy prepare for elections.
Repeating its standard forward guidance, the ECB said that it
continues to expect its key interest rates to remain at present
or lower levels for an extended period of time and well past the
horizon of the net asset purchases.
It also repeated that its asset buys, set to be cut by a quarter
from April, could be increased or extended if the outlook
becomes less favorable.
At Thursday's meeting, the ECB kept its rate on bank overnight
deposits, which is currently its primary interest rate tool, at
-0.40 percent.
The main refinancing rate, which determines the cost of credit
in the economy was unchanged at 0.00 percent while the rate on
the marginal lending facility -- or emergency overnight
borrowing rate for banks -- remains at 0.25 percent.
(Reporting by Balazs Koranyi)
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