The organization’s Governing Council, which met in Frankfurt on Thursday, assured at its next review in June that if the downward dynamics of inflation and the soundness of monetary policy continue, it could cut interest rates.
He European Central Bank (ECB) maintained this Thursday for the fifth time in a row interest rates of 4.5%the highest level since 2001, although it is open to a reduction from the current level of restrictions if inflation continues its downward momentum.
The organization’s board of directors, which met in Frankfurt on Thursday, also decided to leave the credit facility – which provides banks with overnight loans – unchanged at 4.75% and the deposit facility – which reimburses one-day surpluses – at 4%.
The ECB has assured that, if the dynamics of the inflation and the soundness of monetary policy continues to trend traps trajectory in your next evaluation in June, could lower interest rates.
In any case, the agency has reiterated that it will continue to rely on the data and decide to meet by complying with the appropriate level and duration of restriction.
The organization has taken this decision in a context where inflation continues to decline while the economy has avoided a technical recession by the end of 2023. In the case of inflation, it was reduced by two-tenths to 2.4% in March, while underlying inflation – which excludes the impact of energy and food prices as they are more volatile – fell by three-tenths to 2.0%. 9%.
The ECB has left interest rates unchanged for the fifth time in a row at 4.5%, after raising them ten times between July 2022 and September 2023 in a range of between 0.25 and 0.75 points, to the highest level since 2001.
Source: EITB
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