The agency decided to reduce by 25 basic points the interest rate paid for bank deposits, placing it by 2.5%.
He European Central Bank (ECB) reduced the interest rates for the sixth time in the last nine months, In line with your strategy of monetary flexibility in the midst of economic uncertainty caused by the commercial war and the increase in military spending in Europe. With inflation approaching its 2%goal, the agency decided to reduce the interest rate that it pays for bank deposits by 25 basic points, placing it by 2.5%, level that described as “significantly less restrictive.”
“Monetary policy is becoming considerably less restrictive, since the reduction of rates facilitates access to new loans for both companies and homes, which is promoting credit growth,” the ECB said in a statement.
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However, Thursday’s decision could be the last to be taken with relative ease. As of next month, any additional adjustment could generate intense debates among those responsible for monetary policy, since they persist concerns about inflation.
Inflation in Europe dropped to 2.4% annually in February and gave the ECB to make the decision
He Consumer Price Index (CPI) From the Eurozone he recorded in February a slight fall of one tenth, placing its year -on -year rate at 2.4%, according to preliminary Eurostat data. This moderation is mainly due to the decrease in the cost of energy, although food continues to make more expensive.
By countries, Estonia (5%), Croatia (4.7%) and Belgium (4.4%) registered the highest inflation rates, while France (0.9%), Ireland (1.3%) and Finland (1.5%) presented the lower increases.
Excluding energy, fresh food, alcohol and tobacco, core inflation also moderated one tenth, reaching 2.6%, its lowest level since January 2022.
Source: Ambito
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