ECB Keeps Interest Rates Unchanged

The ECB has kept its deposit facility rate unchanged at -0.4% and continues its QE program until inflation is sustainably adjusted. No changes were expected in forward guidance or policy, and none were made. The focus is on Mario Draghi's upcoming speech and Q&A, where he will face questions about the euro's rapid appreciation. There is pressure on Draghi from ECB council members to end quantitative easing, but the appreciating euro complicates achieving inflation targets. Draghi aims to meet these targets and raise rates before his term ends in October 2019.

What has the ECB decided regarding its deposit facility rate?

• Raised it to zero

• Left it unchanged at negative 0.4%

• Decreased it to negative 0.5%

• Increased it to positive 0.4%

What is the main focus of Mario Draghi's upcoming speech?

• Reduction in quantitative easing

• New interest rate hikes

• The rapid appreciation of the euro

• Changes in the bond buying program

What is one of the pressures on Mario Draghi during his tenure?

• To lower interest rates

• To decrease the euro's value

• To increase the euro's value

• To end quantitative easing

Why is the appreciating euro a challenge for Mario Draghi?

• It leads to higher interest rates

• It reduces the ECB's credibility

• It complicates hitting the inflation target

• It makes exports cheaper

What is Mario Draghi's goal before his term ends in October 2019?

• To achieve the inflation target and raise rates

• To resign from his position early

• To decrease the euro's value

• To implement new quantitative easing measures