Image: colourbox.de
According to the ECB Council’s decision on Thursday, the deposit interest rate that banks receive for parked funds remains at 4.0 percent. This is the highest level since the monetary union was founded in 1999.
In July 2022, the ECB ended the years of zero and negative interest rates in order to get high inflation under control. The central bank raised interest rates ten times in a row. Higher interest rates make loans more expensive, which can slow down demand and counteract high inflation rates. However, more expensive loans are also a burden for the economy because loan-financed investments become more expensive.
The fact that inflation has been trending downward recently gives the monetary authorities leeway to loosen monetary policy again. The weakening economy in the euro area and in Europe’s largest economy, Germany, could benefit from interest rate cuts.
My themes
For your saved topics were
new articles found.
info By clicking on the icon you can add the keyword to your topics.
info
By clicking on the icon you open your “my topics” page. They have of 15 keywords saved and would have to remove keywords.
info By clicking on the icon you can remove the keyword from your topics.
Add the topic to your topics.
Source: Nachrichten
