ECB leaves rates of interest unchanged for second time

The European Central Bank (ECB) left curiosity charges untouched for the second time in a row on Thursday.

“The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4.50%, 4.75% and 4.00% respectively,” learn a press release launched by the financial institution Thursday.

It follows after the Bank of England on Thursday held its key rate of interest at 5.25% and the US central financial institution had additionally frozen borrowing prices on Wednesday.

The ECB additionally revised its inflation projections and expects to succeed in its 2% goal in roughly two years.

Inflation is projected to succeed in 2.7% in 2024 fairly than the beforehand projected 3.2%. In 2025, it would dip additional to 2.1%, earlier than reaching 1.9 % in 2026.

Ongoing inflation warning

Despite inflation within the eurozone slowing to a two-year low of two.4% in November after peaking at round 10% final yr, the ECB warned towards overoptimism, saying it might rise once more briefly within the close to time period.

“Should we lower our guard? We ask ourselves that question. No, we should absolutely not lower our guard,” financial institution President Christine Lagarde stated at a information convention.

Policymakers “did not discuss rate cuts at all, no discussion, no debate on this issue,” she stated.

She stated future choices would be certain that charges “will be set at sufficiently restrictive levels for as long as necessary,” which means that charges won’t come down within the close to future.

tj/lo (Reuters, AP)