The European Central Bank published minutes of its July 26 governing council meeting. At that time, the Governing Council decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility would remain unchanged at 0.00 percent, 0.25 percent and -0.40 percent respectively. Key members on the bank's governing council appear increasingly assured that inflation will over time return to levels consistent with their goal of just under 2 percent - without the help of short-term factors such as a surge in oil prices.
The Governing Council confirmed that key ECB interest rates will remain at their present levels at least through the summer of 2019 and, in any case, for as long as necessary to ensure the continued sustained convergence of inflation to levels below, but close to, 2 percent over the medium term.
Regarding non-standard monetary policy measures, the Governing Council would continue to make net purchases under the APP at the current monthly pace of €30 billion until the end of September 2018. The Governing Council anticipated that, after September 2018, subject to incoming data confirming its medium-term inflation outlook, the monthly pace of the net asset purchases would be reduced to €15 billion until the end of December 2018 and that net purchases would then end. The Governing Council intended to reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of the net asset purchases and, in any case, for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation.