The European Central Bank (ECB) has opted to keep interest rates on hold until 2020 after slashing its forecast for eurozone growth.

The central bank revised its 2019 growth downwards to 1.1%, a significant revision from 1.7%.

Meanwhile, the bank now expects growth of 1.6% as opposed to 1.7% for 2020.

Inflation forecasts were also slashed to 1.2% in 2019, down from from 1.8%, 1.5% in 2020 (down from 1.6%) and 1.6% in 2021, as opposed to the 1.7% initially anticipated.

In addition, the ECB announced low rate multiyear loan measures as it looks to encourage growth in the European economy.

The stimulus, which has been named Targeted Longer-Term Refinancing Operations, will commence in September and end in March 2021, with a two-year maturity.

With regards to future interest rates, the ECB said the following:

“The governing council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term.

Back in December, the European Central Bank announced the end to its quantitive-easing programme.

The bank began the €2.5 trillion stimulus programme back in 2015, following suit from similar actions set in place in the UK and the U.S.

ECB President Mario Draghi is set to speak at a press conference today to answer question on the latest monetary policy decision.

Watch the conference live below:

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Nicole covers emerging global economic and political events for The UK Investor Magazine. Her focus is particularly upon company news and political developments in Europe and the US.