ECB keeps rates on hold as it waits for stimulus to bite


The European Central Bank left its main interest rate unchanged at a record low of 0.15 percent on Thursday, holding off fresh policy action while it waits for stimulus measures announced last month to take effect.

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The decision to leave rates unchanged was expected after the ECB cut them in June, taking its deposit rate below zero, launching a new round of long-term loans to boost lending, and signaling it could do more if necessary.

At Thursday's meeting , the ECB kept the rate on bank overnight deposits at -0.10 percent, which means banks are paying to park their funds at the central bank, and held its marginal lending facility - or emergency borrowing rate - at 0.40 percent.

Markets now turn their attention to ECB President Mario Draghi's 1230 GMT news conference, at which he is expected to give a more detailed explanation for the ECB's decision.

(Reporting by Eva Taylor Editing by Jeremy Gaunt)