For example, interest rates will end in 2024 at the lowest level since March 2023. Lagarde has admitted that they debated “proposals” for a 50-point rate cut, although the 25-point cut was ultimately adopted unanimously.
The European Central Bank (ECB) cut interest rates by 25 basis points to 3% this Thursday and ends 2024 with four descents of the official money price, the last three consecutive, given the decline in inflation and an economic recovery “slower than in the September projections”.
Interest rates will therefore end in 2024 at the lowest level since March 2023after the ECB will trim at some point in the year following the period of tightening due to rising inflation.
The President of the ECB, Christine Lagardehas admitted that the entity’s Board of Directors debated “proposals” for a 50 basis point rate cut, although the 25 basis point cut was ultimately approved unanimously.
The ECB Governing Council, which last met in Frankfurt (Germany) in 2024, also cut the main financing operations (OPF) – the weekly cash injections – and cut the credit facility -the one who lends to banks at night-, to 3.15 and 3.4 respectively.
The ECB said in a statement that most indicators indicate that the inflation will stabilize around 2% target in the medium term, despite the fact that internal inflation remains high as wages and prices in some sectors adjust to interest rate increases.
The ECB has stated that it is committed to ensuring that inflation stabilizes at its 2% target over the medium term and that it will apply a data-based approach ‘to determine the appropriate stance of monetary policy’.
The ECB made this decision after inflation rose by three-tenths in the eurozone in November 23%although in line with what was previously predicted by the organization, while the GDP raised one 0.4% in the third quarter of 2024 compared to the second.
Regarding you macroeconomic projections Updated, the ECB has again lowered its growth forecast for the eurozone this year by one-tenth to 0.7%, while for 2025 it has revised down its previous forecast by two-tenths to 1.1%.
Similarly, the country has cut its inflation forecasts for 2024 and 2025 by a tenth, to 2.4% this year and to 2.1% next year, while for 2026 it remains at 1.9%.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
