EU-flash: ECB Monetary policy decisions & results March European Council


On March 10, 2016, the ECB took a number of monetary policy decisions pertaining to the interest rates, the assets bail-in programme and the refunding transactions. In addition, the European Council confirmed its aims in the field of migration, employmernt, economic growth and competitiveness, climate and energy.

Below you can find a brief summary of these topics.

ECB: Monetary policy decisions

During its Governing Council meeting of 10 March 2016, the ECB took the following monetary policy decisions:

  • The interest rate on the main refinancing operations of the Euro system will be decreased by 5 basis points to 0.00%, starting from the operation to be settled on 16 March 2016.
  • The interest rate on the marginal lending facility will be decreased by 5 basis points to 0.25%, with effect from 16 March 2016.
  • The interest rate on the deposit facility will be decreased by 10 basis points to -0.40%, with effect from 16 March 2016.
  • The monthly purchases under the asset purchase programme will be expanded to €80 billion starting in April.
  • Investment grade euro-denominated bonds issued by non-bank corporations established in the euro area will be included in the list of assets that are eligible for regular purchases.
  • A new series of four targeted longer-term refinancing operations (TLTRO II), each with a maturity of four years, will be launched, starting in June 2016. Borrowing conditions in these operations can be as low as the interest rate on the deposit facility.

Click here for more information.

Conclusions of the March European Council

On 17-18 March, the European Council held its meeting and presented its main conclusions on following domains:

  • Migration: The European Council confirms its comprehensive strategy to tackle the migration crisis. Priority will continue to be given to regaining control of our external borders. The European Council takes note of the Commission Communication "Next operational steps in EU-Turkey cooperation in the field of migration". Work will also be taken forward on the future architecture of the EU's migration policy, including the Dublin Regulation.
  • Jobs, Growth & Competitiveness: The European Council endorsed the policy priority areas of the Annual Growth Survey: re-launching investment, pursuing structural reforms to modernise our economies, and conducting responsible fiscal policies. At its June meeting, the European Council will discuss the progress achieved in the work towards completing the Economic and Monetary Union. It will also adopt an Agenda for the implementation of all aspects of the Single Market, including delivery of the Commission's Single Market, Digital Single Market and Capital Markets Union strategies. The European Council notes the situation of farmers and invites the Commission to quickly act upon the outcome of the Council (Agriculture) meeting of 14 March. It also notes that the Commission intends to publish shortly a communication on an action plan on VAT.
  • Climate & Energy: The European Council welcomes the submission by the Commission of the package on energy security as well as of the Communication "Road from Paris".

Here you can find more information on the conclusions of the March European Council.

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