ECB Drops Guidance on Rate Cuts in Step Toward Stimulus Exit
- Monetary policy statement no longer says rates could go lower
- President Draghi to explain decision in briefing in Tallinn
ECB Changes Forward Guidance on Interest Rate Cuts
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The European Central Bank ruled out further interest-rate cuts in a sign that it’s moving closer to an exit from its stimulus program.
The Governing Council, meeting in Tallinn on Thursday, dropped its guidance that rates might fall further, saying only that it now expects borrowing costs to stay at present levels for an extended period. Policy makers reiterated their pledge to increase the size or duration of their bond-buying program if the economy deteriorates.