Some positives but ECB set to keep rates low

As expected, the ECB left its interest rate policy unchanged at its August meeting last week, with the main refi rate remaining at 0.5%.

No discussion took place on cutting interest rates, but there was a unanimous decision by the governing council to confirm its forward guidance of the previous month.

In July, the council provided forward guidance on interest rate policy for the first time, stating that it expects the key ECB interest rates to “remain at present or lower levels for an extended period of time”.