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In keeping with market expectations, the ECB keeps interest rates at 2%

The European Central Bank has reiterated its' determination 'to stabilise inflation at the 2% target in the medium term, for which the data approach will be applied' meeting by meeting '. 

El Banco Central Europeo (BCE) ha priorizado la lucha contra la inflación y ha subido medio punto los tipos de interés, como estaba previsto, pese a las turbulencias de la crisis bancaria.
The European Central Bank.

The Governing Council of the European Central Bank (ECB) decided on Thursday to follow the lead and keep interest rates unchanged again, so that the deposit rate (DFR) will remain at 2%, the reference rate (MRO) for major refinancing operations at 2.15% and the marginal lending facility (MLF) at 2.40%.

In line with market expectations, the ecb has decided to wait after halting the cycle of easing that reduced the price of money by 200 basis points in June, through eight downward adjustments, the last seven in a row.

"The Governing Council has today decided to keep the ECB's three official interest rates unchanged. Inflation is currently around the target of 2% in the medium term and the valuation of inflation forecasts [...] remains virtually unchanged," the agency explains.

The European Central Bank has reiterated its' determination 'to stabilise inflation at the 2% target in the medium term, for which the data approach will be applied' meeting by meeting '. 

Future decisions will be based on an assessment of inflation forecasts and associated risks, taking into account new economic and financial data, the dynamics of the underlying inlay and the intensity of the transmission of monetary policy. The institution headed by Christine Lagarde has ruled out a prior commitment to any specific trajectory.

Inflation projections

In the projections of global inflation for the next three years, it does not foresee any change since June. Overall, it has advanced that overall inflation will be 2.1% on average by 2025, 1.7% by 2026 and 1.9% by 2027.

Projections for this year and next have increased by a tenth, while projections for 2027 have decreased by a tenth. 

The estimated under-income, excluding the impact of energy and food, will remain at 2.4% by 2025, 1.9% by 2026 and 1.8% by 2027.

By contrast, the ECB estimates that the economy will grow by 1.2% by 2025, three tenths higher than expected in June. The projection for 2026 has fallen by a tenth, to 1%, while the projection for 2027 remains at 1.3%.

The inflation rate in the euro area was 2% year-on-year in July, the same as in the previous month, while in the European Union it was 2.4%, a tenth more.




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