KEY POINTS
  • The European Central Bank held interest rates on its main refinancing operations, marginal lending facility and deposit facility at 0.00%, 0.25% and -0.50%, respectively.
  • The ECB said it would "continue to monitor developments in the exchange rate with regard to their possible implications for the medium-term inflation outlook."
  • The euro gained 0.2% against the dollar following the decision.

LONDON — The European Central Bank on Thursday expanded its massive monetary stimulus program by another 500 billion euros ($605 billion), as a second wave of lockdown measures weighs on the euro area's economic recovery.

Markets had largely expected the central bank to add to its bond buying, having vowed in October to "recalibrate its instruments" as a resurgence in coronavirus cases across the Continent led to further national shutdowns.