The European Central Bank kept rates unchanged after its latest rate cut and said it was waiting to see market signals before deciding how to proceed.
He European Central Bank (ECB)lead by Christine Lagarde, announced on Thursday that it decided to keep its interest rates for the euro zoneafter a first cut in June.
The reference deposit rate, remains at 3.75%, while the rate on refinancing operations and the marginal lending facility remain at 4.25% and 4.50% respectively.
The ECB reiterated that it needs more evidence that inflation is returning to its target before cutting interest rates further. Having largely overcome the worst bout of inflation in a generation, the Fed began cutting rates last month and is expected to continue doing so gradually at least until the end of next year.
The ECB will continue to pay close attention to the signals it receives
However, the central bank once again stressed that The relaxation process will depend on the data received and, in particular, local inflation, which has been slowly increasing in recent months.
“The information available generally supports the previous assessment of the Governing Council on the inflation outlook in the medium term,” the ECB said.
Lagarde will certainly face questions about the future path of the types at a press conference he will give today.
Source: Ambito
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