The European Central Bank (ECB) decided to keep interest rates unchanged at its meeting today, as expected at the current zero levels, as the statement issued moments ago indicated that there is still a need for monetary adjustment until the inflation rate stabilizes at the bank’s target of 2%.

The bank maintained its APP asset purchases at a monthly pace of $20 billion that will continue for as long as necessary and will end just before the interest rate hike, and announced that it will continue its emergency purchase program of €1.850 billion until the end of March next year.

The statement indicated that the bank will increase its purchases of assets in the second quarter of next year to 40 billion euros and to 30 billion euros in the second quarter.

The bank expects interest rates to remain at their current levels until the bank’s 2% inflation target is achieved over the medium term.

The euro reacted positively to the statement and rose by about 20 points against the US dollar to test 1.1345 levels before declining now less than half an hour before Christine Lagarde’s press conference.