ECB keeps interest rates, policy unchanged, as forecast

The European Central Bank (ECB) has decided to keep interest rates unchanged at 0.05% and the deposit facility at -0.20%.

While the move was widely expected, the market is urging the ECB to enact full-on quantitative easing to address low inflation and a weak economy. r

President Mario Draghi's press conference at 13:30 London time, will therefore be carefully watched for any clues as to whether QE is on the cards.1256:

"The ECB is unlikely to succumb to pressure for full-blown quantitative easing at today’s press conference (from 13.30 GMT), but it will continue to lay the groundwork," said Capital Economics.

"The Bank has already embarked on its third programme of covered bond purchases and will soon start to buy asset-backed securities. We may hear more details about these programmes at the press conference. Meanwhile, President Draghi is likely to talk up the positive results of the bank stress tests, perhaps suggesting that banks may demand more funds for lending at the ECB’s second TLTRO next month."

The analysts added that the policies are unlikely to do enough to get the economy back on its feet or eliminate the threat of deflation.

Follow our live coverage of the ECB decision and press conference here:

ECB Live: Rolling coverage of the policy decision and Draghi press conference