2024-07-18 20:52:14
At the meeting of the ECB Council in Frankfurt, it was decided to maintain the main refinancing operations rate at 4.25%, the overnight deposit rate at 3.75% and the overnight lending rate at 4.5%.
A statement issued after the council meeting said that “the information received broadly confirms the council’s previous assessment of the medium-term inflation outlook”.
“Although some indicators of core inflation increased in May due to the impact of one-off factors, most indicators were either stable or decreased in June. In line with expectations, earnings offset the impact of large wage increases on inflation. Financing conditions are still restrictive under the influence of monetary policy. At the same time, strong domestic prices remain pressure, service price inflation is high and overall inflation is expected to exceed the target for a significant part of next year,” the council says.
“The Council is committed to ensuring a timely return of inflation to its 2% MTO. It will keep monetary policy interest rates at sufficiently restrictive levels for as long as necessary to achieve this objective. The Council’s approach to determining the extent and duration of restraint will continue to be based on data, making a decision within the framework of each meeting. More specifically, its decisions on interest rates will depend on the assessment of the inflation outlook, taking into account the dynamics of core inflation and the strength of monetary policy transmission.
It has already been announced that all three rates were cut by 0.25 percentage points at the previous meeting in June.
In order to combat high inflation, the ECB Council gradually raised interest rates to record highs for ten consecutive meetings from July 2022 to September 2023, but then kept them unchanged.
According to “Eurostat” data, annual inflation in the Eurozone was 2.5% in June compared to 2.6% in May.
2024-07-18 20:52:14