2024-07-19 04:33:14
THE European Central Bank (ECB) remained unchanged, as expectedits basics interest rates at today’s board meeting.
The main refinancing rate, the marginal funding facility and the deposit facility will remain unchanged at 4.25%, 4.50% and 3.75% respectively.
All eyes now turn to ECB President Christine Lagarde’s press conference for signals about the European Central Bank’s next moves.
The announcement of the ECB
As the ECB announced, the Governing Council decided to keep the three key interest rates unchanged as the latest data broadly supported the previous assessment on the medium-term outlook for inflation.
While some measures of core inflation rose in May due to one-time factors, most measures were either flat or fell in June.
In line with expectations, the inflationary impact of high wage growth was offset by earnings. Monetary policy keeps financing conditions tight. At the same time, domestic price pressures remain high, services inflation is elevated and headline inflation is likely to remain above target next year.
Analyst estimates
Analysts say the ECB is likely to cut interest rates at its next meeting on September 12 as data continue to show inflation is on track to fall towards its 2% target by the end of next year.
Eurozone inflation slowed from 10.6% in October 2022 to 2.5% in June.
The ECB will cut interest rates further, but not today