ECB removes reference to lower rates, more QE possible

The European Central Bank left all its key interest rates unchanged, as expected.

The interest rate for the main refinancing operations was kept at 0.0%, alongside a rate of 0.25% on the marginal lending facility while the deposit rate was unchanged at -0.40%.

Significantly, in its initial statement the ECB Governing Council said it continued to expect rates to remain at present levels for an extended period of time, removing the reference to the possibility that they might be lowered further.

However, the Council reiterated that, if necessary, it stands ready to increase the size of its quantitative easing programme.

Attention now shifts to the start of ECB chief Mario Draghi's press conference at 1330 BST.

As of 1252 BST euro/dollar was down 0.25% to 1.1234.