Hey European Central Bank (ECB) It was announced this Thursday (06) that its number would be reduced expenses By 0.25 percentage points. This is the first story he promoted European Central Bank Since September 2019.
As a result, the interest rate in the euro area rose from 4% to 3.75% annually. It is worth noting that inflation in the bloc reached 2.4% in the past 12 months, and the target was 2% annually.
The monetary authority began raising interest rates in July 2022. At that time, the adjustment aimed at controlling inflation was 0.5 percentage points and was the first increase promoted by the central bank. European Central Bank In 11 years.
The European Central Bank stressed in its statement that the decision took into account inflation expectations, the dynamics of core inflation, and the strength of monetary policy transmission. “It is now appropriate to ease the degree of tightening of monetary policy after nine months of keeping interest rates stable,” the text says.
However, the monetary authority notes that despite the progress recorded in recent quarters, internal pressures on prices remain strong, as wage growth is high and inflation is likely to remain above target over the next year.
“The Governing Council is determined to ensure that inflation returns to its medium-term target of 2% in time. We are keeping indicative rates sufficiently constrained for the time needed to achieve this target.
President of the European Bank, Christine Lagarde, He will now participate in a press conference this morning, where he will indicate the ECB's next steps. It is expected that new cuts will be indicated at future meetings in 2024.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.