2023-12-14 19:21:10
The European Central Bank has kept interest rates steady, following the lead of other major central banks, but has not spoken clearly regarding a future easing of monetary tightening while inflation is falling sharply.
Thus, the key deposit rate, a benchmark for credit in the euro area, was maintained at its historically high level of 4% reached in September.
At the end of a turbulent year, the Bank of England left its key interest rate unchanged at 5.25%, saying that inflationary pressures persist and that interest rates are likely to remain high for a “long period.”
While the cycle of radical interest rate increases appears to be coming to an end for major monetary institutions, the question now is what moment will be chosen to ease restrictions.
“Core inflation (excluding volatile energy and raw materials prices) has continued to decelerate” since October, but “pressures on prices remain mainly due to dynamic growth in unit labor costs,” the ECB said in a statement.
The statement on monetary policy decisions does not provide any indication of a future cut in interest rates.
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