Last week the ECB left interest rates unchanged for the third time in a row, as expected by analysts. Interest rates remain unprecedentedly high. The refinancing interest rate, the interest rate that banks pay to borrow money from the ECB, is 4.5 percent. The deposit interest rate is 4 percent. That is the interest that banks receive if they park excess money briefly at the ECB.
The ECB Governing Council said at the announcement last week that the previous inflation outlook had been largely confirmed. Although there is an upward effect from energy prices, underlying inflation remains on a downward trend. In the explanation of the interest rate decision, Lagarde said that it is “premature” to talk about a possible reduction in interest rates.
In October, the ECB did not raise interest rates for the first time in a long time. During the ten previous interest rate meetings, an increase had been achieved each time.
2024-01-31 00:45:00
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