It’s time to rest for the ECB. After ten consecutive increases, the European Central Bank (ECB) has decided not to raise its official rates. ECB officials, meeting in Athens instead of Frankfurt headquarters for an extraordinary meeting, are now relying on the status quo to combat inflation, suspending their monetary tightening policy.
This decision by the ECB thus marks the end, for the moment, of the fastest rate hike cycle in its history, which began in July 2022. Despite tense internal discussions, the European Central Bank had raised its rates again key last September.
The deposit rate, the reference rate, was increased by 25 basis points last September to reach 4%, a level never reached since the launch of the single currency in 1999. The refinancing rate and the marginal deposit rate The lending facility is respectively at 4.50% and 4.75%.
Between an expected contraction in eurozone GDP in the third quarter and downward trending inflation, the latest economic data argued for a pause in key rates.
Source: BFM TV
