Analysts discounted this decision, thus the ECB continued with its cycle of monetary easing after the decline in October, when it decided to cut rates in the same proportion.
He European Central Bank (ECB) this Thursday cut interest rates by 25 basis points, and lowered them to the level of 3%, which will conclude 2024 with four decreases this year, the last three consecutive, in a context in which the focus of concern turned to economic growth.
The Governing Council of the ECB, which met for the last time in 2024 in Frankfurt (Germany), too downgraded main financing operations (OPF) -the weekly injections of money- and the credit facility -which lends to banks overnight-, up to 3.15 and 3.4, respectively.
Analysts discounted this decision, so the ECB continued with its cycle of monetary easing after the October declinewhen he opted to cut rates in the same proportion.
“In particular, the decision to lower the interest rate applicable to the deposit facility […] is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the intensity of monetary policy transmission,” the ECB argued.
The rate of inflation of the euro zone It stood at 2.3% year-on-year in November, three tenths more than the increase in the previous month and the highest year-on-year increase since last July, according to the community statistical office, Eurostat.
The acceleration of prices in the common currency area reflected the 1.9% drop in the cost of energy after decreasing by 4.6% year-on-year in October, while fresh food increased by 2.4%, six tenths less.
Source: Ambito
