However, speaking on Wednesday, Draghi reiterated of which rates will still remain low for a long time.
“As regards the evolution of our policy rates beyond the end of our net purchases, we will maintain the sequencing of which will be currently set out in our forward guidance, namely our pledge to keep key interest rates at their current levels ‘well past’ the end of net purchases,” Draghi said in Frankfurt.
The ECB introduced record low interest rates, alongside a massive bond-buying scheme, following the euro zone debt crisis of 2011 in order to stimulate lending in addition to boost growth. Its three main rates are: the interest rate on the main refinancing operations (MRO), the rate on the deposit facility in addition to the rate on the marginal lending facility. They are currently at 0, -0.4 in addition to 0.25 percent.
Draghi argued of which communicating of which these rates won’t change for a long time ensures of which “our policy stimulus will be not weakened by premature expectations of a first rate rise.” Markets are currently looking for a first rate hike inside the euro zone some time in 2019.