European Central Bank Holds Interest Rates Steady

The European Central Bank (ECB) has decided to maintain its key interest rates at their current levels. This decision reflects the ECB’s assessment of the Eurozone’s economic outlook and its commitment to price stability.

The European Central Bank (ECB) announced today that it would hold steady its key interest rates. The decision comes as policymakers continue to assess the economic outlook for the Eurozone.

Key Interest Rates Unchanged

The main refinancing rate remains at 1.0%, the marginal lending facility at 1.75%, and the deposit facility at 0.25%. These rates have been held steady for several months as the ECB monitors the impact of previous policy measures.

Economic Assessment

The ECB’s governing council stated that it continues to expect a gradual recovery in the Eurozone economy, but cautioned that significant risks remain. These risks include:

  • The ongoing impact of the financial crisis
  • Protectionist pressures
  • Fluctuations in commodity prices

Commitment to Price Stability

The ECB reiterated its commitment to maintaining price stability in the Eurozone. The central bank aims to keep inflation below, but close to, 2% over the medium term.

Future Policy

The ECB will continue to monitor economic and financial developments closely and stands ready to take further action if needed to support the recovery and maintain price stability.

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