Frankfurt (Germany), 29 Oct. (LaPresse) – The Governing Council of the European Central Bank (ECB) decided today to keep its three key interest rates unchanged. Consequently, the interest rates on deposits with the central bank, on the main refinancing operations and on the marginal lending facility will remain unchanged at 2.50 per cent, 2.65 per cent and 2.90 per cent, respectively. “Energy prices have continued to rise, entailing upside risks to the inflation outlook and downside risks to the growth outlook,” the ECB stated. “Although the energy shock has yet to fully unfold, core inflation has so far remained broadly stable and wages have not reacted significantly at this stage. The greater magnitude and duration of the energy shock, as well as its implications for indirect and second-round effects, are likely to push up inflation and weaken growth,” explains the central bank, adding that “Financing conditions have tightened since the Governing Council’s last meeting, and this is likely to affect inflation and growth. The Governing Council is committed to conducting monetary policy in such a way as to ensure that inflation converges to the 2 per cent target in the medium term.”
ECB: Governing Council leaves interest rates unchanged
Frankfurt (Germany), 29 Oct. (LaPresse) – The Governing Council of the European Central Bank (ECB) decided today to keep its three key interest rates unchanged. Consequently, the interest rates on deposits with the central bank, on the main refinancing operations and on the marginal lending facility will remain unchanged at 2.50 per cent, 2.65 per cent and 2.90 per cent, respectively. “Energy prices have continued to rise, entailing upside risks to the inflation outlook and downside risks to the growth outlook,” the ECB stated. “Although the energy shock has yet to fully unfold, core inflation has so far remained broadly stable and wages have not reacted significantly at this stage. The greater magnitude and duration of the energy shock, as well as its implications for indirect and second-round effects, are likely to push up inflation and weaken growth,” explains the central bank, adding that “Financing conditions have tightened since the Governing Council’s last meeting, and this is likely to affect inflation and growth. The Governing Council is committed to conducting monetary policy in such a way as to ensure that inflation converges to the 2 per cent target in the medium term.”