New cut, from 25 basis points. The third from June. The European Central Bank raised deposit rates to 3.25%, the refinancing rate to 3.40% and the deposit facility rate to 3.65%. Above all, he suggests that the movement of a limited monetary policy could end a little earlier: the 2% target will be reached, explains the statement published at the end of the meeting, «during the next year» and in September «the second half» from 2025.
The decision was made as a result of a new assessment of the inflation outlook, following the September figure – an annual increase in the index of 1.8% – and signs of a slowdown in economic activity (a will also cool the prices). In any case, according to the press release, inflation is expected to “rise in the coming months” before falling. Wages will “continue to increase at a high rate” although pressure from labor costs is expected to continue to decline gradually, while profits will “to some extent” include the their impact on inflation.
2024-10-17 12:33:00
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