The ECB again reduces interest rates with 0.25 points to 2.25 %

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The European Agency has warned that commercial tensions will negatively influence the economic predictions for the euro area.

He European Central Bank (ECB) decided on Thursday to reduce interest rates 25 Basic pointsso that the deposition of the deposit in the convenience in the 2.25 %The most important refinancing activities at 2.40 % and the convenience of loan in 2.65 %.

The Board of Directors took this decision in accordance with the valuations of inflation perspectives, the dynamics of the underlying inflation and the strength of the transfer of monetary policy.

“The disinflation process continues to progress. Inflation has continued to evolve as expected by ECB experts, and both general and underlying inflation were reduced in March,” the ECB improved.

“The growth of wages is moderated and the benefits are partially damping the impact of salary increases, still high on inflation,” he added the body.

However, the issue institute has warned that Commercial tensions will have a negative influence according to economic predictions for the euro area.

“The economy of the eurozone has been collected a certain resilience To deal with world disorders, but growth prospects have deteriorated as a result of the increase in commercial tensions, “the ECB warned.

In the bank’s opinion based in Frankfurt, greater uncertainty could reduce the trust of households and companies, and “it is probably” that the “negative and volatile” reaction of markets to commercial tensions gives rise to a pavement of financing conditions. “These factors could also ballast the economic perspectives of the eurozone,” he warned.

In any case, the ECB’s administrative council is prepared to take care of it Inflation is stabilized in 2 % In the medium term and has promised to make their decisions to meet.

Source: EITB

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