The European Central Bank left its benchmark interest rate on hold at 0.05 percent on Thursday as anticipation grows for a private sector assets purchase program, worth hundreds of billions of euros, to stimulate the economy.
“At today’s meeting, which was held in Naples, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05 percent, 0.30 percent and -0.20 percent respectively.” said in a statement released from ECB on its website.
In its previous meeting on September 4, the bank had cut its main interest rates to 0.05 percent in order to stimulate the Eurozone economy, which is showing signs of deflationary risks.
Economists see deflation as a notable risk factor as consumers, expecting prices to fall, might spend less, thus threatening to bring the stuttering Eurozone economy to a complete halt.