The European Central Bank (ECB) today kept interest rates in the euro area at the historic low of 0.05%, to boost inflation and economic activity.

The ECB reported that the governing council, meeting at the entity's headquarters in Frankfurt, also decided to maintain the interest rate of the marginal credit facility, at which it lends overnight money, at 0.30 %.

Likewise, the entity maintained the deposit facility, by which it remunerates the money to the banks, at -0.20%, thus penalizing those who deposit cash with the ECB.

This emergency liquidity provision is more expensive than that offered by the ECB in its ordinary refinancing operations and costs 1.55%, interest that Greek banks pay to the Bank of Greece. The ECB lends in its refinancing operations, the regular auctions, at 0.05%.

SOURCES: La Vanguardia