The governors of the European Central Bank set the deposit rate at 4%, key for banking operations in the euro zone. This is the tenth consecutive increase.
He European Central Bank (ECB) this Thursday raised its rate by 0.25 points to 4%, chaining ten increments in a rowwithin the framework of a monetary policy to anchor inflation in the Euro zone, despite pressure to stimulate the ailing economy.
“The inflation continues to slow down, but it is expected to continue at too high a level for too long a period,” the issuer of the 20 countries that use the euro reported in a statement.
The ECB governors They raised rates again and set the deposit rate at 4%, key for banking operations in the euro zone, which is now at its highest level since the introduction of this currency in 1999.
Also, the central bank adjusted upwards its price forecasts for 2023 and 2024, with an increase of 5.6% this year and 3.2% next year.
ECB: new projections for inflation and growth
In 2025 the issuer projects a inflation level of 2.1%, which is close to the entity’s medium-term objectives, set at around 2%.
The ECB also cut its forecasts for him growth of the economies of the euro countries, with a projected GDP expansion of 0.7% in 2023, 1% in 2024 and 1.5% in 2025.
In its analysis made in June, the entity forecast economic growth of 0.9% this year, 1.5% in 2024 and 1.6% in 2025.
Source: Ambito
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