Ekonomické zprávy
11.04.2024

ECB leaves its key interest rates unchanged, as widely anticipated

The European Central Bank (ECB) left its main refinancing rate unchanged at 4.50 per cent on Thursday, as widely anticipated. The ECB’s interest rates on the marginal lending facility and the deposit facility were also remained unchanged at 4.75 per cent and 4.00 per cent, respectively. It was the ECB’s fifth consecutive meeting on hold. T

In its policy statement, the ECB noted:

- Incoming information has broadly confirmed Governing Council’s previous assessment of the medium-term inflation outlook;

- Most measures of underlying inflation are easing, wage growth is gradually moderating, and firms are absorbing part of the rise in labour costs in their profits;

- But domestic price pressures are strong and are keeping services price inflation high;

- Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner;

- Governing Council considers that the key ECB interest rates are at levels that are making a substantial contribution to the ongoing disinflation process;

- Governing Council’s future decisions will ensure that its policy rates will stay sufficiently restrictive for as long as necessary;

- If Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction;

 - Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction, and it is not pre-committing to a particular rate path;

- Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission

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