ECB Hold Rates Unchanged
London, 25 January 2024
Despite worries about an impending recession and a gradual easing of inflationary pressures, the European Central Bank kept interest rates unchanged at record-high levels during its first meeting of 2024 and promised to keep them at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2% target in a timely manner.
For the third day in a row, the primary refinancing operations rate kept stable at an all-time high of 4.5%, while the deposit facility rate continued to hover around 4%.
President Lagarde said reporters at the central bank's press conference that officials all agreed it was too soon to start talking about interest rate reductions.
The European Central Bank ended its cycle of quick rate hikes in September, but because of ongoing pricing pressures within the Eurozone and geopolitical events, such as the blockade of the Red Sea, the bank has continued to adopt a relatively hawkish position. Source: Trading Economics