ECB holds rates at 2% as inflation rises and eurozone growth slows
The bank said it is waiting for more data as energy-driven price pressures and weaker growth leave policymakers weighing inflation risks against recession concerns.
- On Thursday, the European Central Bank held its benchmark deposit facility rate at 2%, signaling potential interest rate hikes later this year while adopting a meeting-by-meeting approach to monetary policy.
- Eurozone inflation jumped to 3% this month, exceeding the Bank's 2% target, as the war in Iran pushed oil prices to a four-year high, threatening a difficult inflation spiral.
- Underlying core inflation slowed to 2.2% in April from 2.3%, suggesting second-round effects remain contained; the Bank noted "the upside risks to inflation and the downside risks to growth have intensified."
- The Euro rose 0.2% to $1.17 following the decision, while financial markets now anticipate rate increases in June and July as the ECB attempts to quash any potential inflation spiral.
- Deutsche Bank economist Mark Wall noted the ECB is not pre-committing to a specific rate path, though some analysts expect a 25-basis-point increase in June to reach 2.25%.
157 Articles
157 Articles
For now the cost of money remains unchanged, but for June it is expected a narrow. Even monetary policy row against.The scene, to want to watch it without haste, seems to be shot at the theater: the ECB leaves the rates at 2% and apparently nothing happens. Sipario immobile, orchestra in silence. Public waiting without cough. But behind the scenes you can see the real show. Because behind the vote "all" unanimity is reassuring as a traffic light…
ECB's Kocher Says Interest-Rate Hold Gives Time to Assess Risks
(Bloomberg) — The European Central Bank’s decision to hold interest rate this week provides policymakers with more time to assess whether the Middle East crisis triggers prolonged inflation, according to Governing Council member Martin Kocher.
In the Governing Council of the European Central Bank, we did not yet consider it necessary to raise interest rates this week, but it is increasingly likely that we will have to do so in the future, writes Madis Müller.
The European Central Bank has held a new meeting on Thursday in a scenario of maximum complexity. With European growth weakened and inflation still above the target, the institution confirmed the expected script: it keeps interest rates unchanged, thus continuing the deposit facility at 2%. The decision, which arrived on the eve of 1 May, Labour Day, raises a key question: what this pause means for European workers in a context of economic uncer…
The European Central Bank (ECB) is keeping interest rates unchanged at 2 percent, but sees the economic outlook deteriorating. Due to the blockade of the...
ECB Holds Interest Rates Steady as Energy Shock Clouds Eurozone Outlook
The European Central Bank (ECB) on April 30 left its key interest rates unchanged, saying that the ongoing war in the Middle East has pushed inflation higher and dampened economic sentiment. The ECB’s Governing Council maintained the deposit rate at 2 percent, the main refinancing operations at 2.15 percent, and the marginal lending facility at 2.4 percent. The decision comes as inflation in the euro area rose to 3 percent in April, up from 2.6 …
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