The monetary authorities of the European Central Bank continue their relaxation course for monetary policy. The sixth most important interest rate has been announced on Thursday since half past 2024.
The deposit rate, which is important for banks and savers, was reduced by 0.25 percentage points to 2.5 percent, as the central bank in Frankfurt announced. Fighting inflation is making good progress. Lower interest rates help the weakening economy in the euro area because loans are usually cheaper.
In addition to the deposit rate, the interest rate that courts can be reduced fresh from the central bank can also be lowered: instead of 2.9 percent, the interest rate of 2.65 percent is due according to the recent decision of the ECB Council.
Interest on which commercial banks receive fresh money from the central bank: instead of 2.9 percent, this will owe 2.65 percent interest after the recent decision of the ECB Council.
No good news for savers
For savers, the renewed most important interest rate is not good news: if commercial banks receive less interest for funds, which they park on the ECB, they usually reduce daily and fixed deposits for their customers. On the other hand, the renewed most important interest rate should not affect the construction interest, according to experts, the interest step is already priced.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
