The European Central Bank (ECB) announced today that it will hold steady its key interest rates. The decision comes as policymakers grapple with persistent uncertainties regarding the future path of inflation within the Eurozone.
Key Interest Rates Unchanged
- The main refinancing operations rate remains at 4.50%.
- The marginal lending facility rate stays at 4.75%.
- The deposit facility rate is unchanged at 4.00%.
In a press release, the ECB stated that while inflation has decreased in recent months, underlying price pressures remain a concern. The central bank emphasized its commitment to bringing inflation back to its 2% target in a timely manner.
Data-Dependent Approach
The ECB reiterated that future policy decisions will be data-dependent, taking into account incoming economic and financial data, as well as underlying inflation trends. The Governing Council will continue to closely monitor developments and adjust its policy stance as needed.
Economic Outlook
The ECB acknowledged the challenges facing the Eurozone economy, including geopolitical risks and the impact of tighter financing conditions. The central bank’s economic forecasts will be updated in the coming months, providing further insights into the expected growth and inflation outlook.
