The European Central Bank (ECB) announced today that it will hold steady its key interest rates. The decision comes as policymakers continue to assess the economic outlook for the Eurozone amid ongoing global uncertainties.
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 statement, the ECB emphasized that its future policy decisions will be data-dependent and determined on a meeting-by-meeting basis. The central bank reiterated its commitment to bringing inflation back to its 2% target over the medium term.
Economic Outlook
The ECB acknowledged the recent moderation in inflation but cautioned that underlying price pressures remain elevated. The central bank’s staff will release updated economic projections in the coming weeks, which will provide further insights into the ECB’s assessment of the economic outlook.
Forward Guidance
The ECB refrained from providing specific forward guidance on the future path of interest rates, emphasizing the need for flexibility in light of the evolving economic landscape. Policymakers will continue to closely monitor inflation expectations, wage growth, and other key economic indicators to guide their decisions.