Brussels, 06/12/2001 (Agence Europe) - During its Thursday meeting, the Governing Council of the European Central Bank (ECB) decided to keep its key rates unchanged. The minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 3.25%, 4.25% and 2.25% respectively. Furthermore, the ECB decided that the reference value for the annual growth rate of the broad monetary aggregate M3 will remain at 4.5%.
During a press conference, Wim Duisenberg felt that the ECB's monetary policy was the adequate policy for ensuring medium-term price stability. He noted that the conditions for recovery of European growth were beginning to show. The economic activity of the euro zone was weak in the second quarter 2001 and will remain so early 2002, he confirmed, before adding that he expected recovery to begin during the first quarter of 2002. He also pointed out positive signs such as the development of the financial markets over recent weeks which "announces a more optimistic perception of economic prospects on the part of operators" and financing conditions in the euro zone remains "very advantageous". Mr Duisenberg announced that the ECB will be publishing on 4 December its economic forecasts for 2002. The ECB President was not concerned about the rise in the annual growth rate of M3 to 6.8% (August to October), which, he says, is tied to temporary factors. This slide of M3 should not cause inflationary pressure, he notes, also recalling that the inflation rate should fall below 2% early next year.