Despite falling inflation: ECB is maintaining its key interest rate at a record level of 4.5 percent

The monetary authorities led by ECB President Christine Lagarde decided on Thursday at their meeting in Frankfurt to leave the key interest rate at 4.50 percent. The key deposit rate on the financial market, which financial institutions receive from the central bank for hoarding surplus funds, remains at the record level of 4.00 percent.

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“The future decisions of the ECB Governing Council will ensure that key interest rates are set at a sufficiently restrictive level for as long as necessary,” said the euro watchdog.

Interest rates have been constant for four sessions

After a series of ten interest rate increases that started in the summer of 2022, the ECB has now kept interest rates constant for four meetings. Inflation in the euro zone has now subsided significantly and was most recently at 2.6 percent in February, after 2.8 percent in January. That is no longer far away from the target of 2.00 percent, which the ECB is aiming for in the medium term as the optimal level for the 20-country community.