FRANKFURT Jan 10 The European Central Bank held
its main interest rate at a record low of 0.75 percent on
Thursday, putting off further policy easing while it assesses
the economic outlook and waits for a bailout trigger to use its
new bond-purchase programme.
The ECB wants to transmit its low interest rates to all
corners of the euro zone - where market interest rates vary
greatly - and aims to do so by pushing down sovereign bond
yields with its new bond-buy programme.
But it cannot use the plan to buy the bonds of Spain - first
in line for support - until Madrid requests a bailout, a
precondition for the ECB to intervene with the new programme,
dubbed Outright Monetary Transactions (OMT).
The ECB left its main rate on hold for the sixth month
running. It also left the interest rate on its deposit facility
at 0.0 percent and held its marginal lending facility - or
emergency borrowing rate - at 1.50 percent.
Euro rose against the U.S. dollar after the decision to
$1.3115 from $1.3096 beforehand.