BREAKING: EUR sees little reaction to ECB decision

The ECB left monetary policy unchanged during its February meeting. Interest rates were kept at record-low levels and confirmed it will discontinue net asset purchases under the pandemic stimulus program at the end of March 2022, and that monthly net purchases will amount to €40 billion in the second quarter of 2022, €30 billion in the third quarter and €20 billion from October onwards and for as long as necessary to reinforce the accommodative impact of its policy rates. The Governing Council expects net purchases to end shortly before it starts raising the key ECB interest rates.

ECB expects APP purchases to end shortly before it starts raising the key rates Rates "to remain at their present or lower levels until it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at 2% over the medium term". This may also imply a transitory period in which inflation is moderately above target ECB stands ready to adjust all of its instruments, as appropriate, to ensure that inflation stabilises at its 2% target over the medium term.

Policymakers did not provide any new updates on the price outlook after inflation in the eurozone hit a fresh record high last month. 

Investors will focus now on ECB President Lagarde comments at the press conference regarding the  economic outlook, geopolitical tensions, inflation and fiscal stimulus.

EURUSD initially currency pair fell after however buyers manage to quickly regain control. Source: xStation5