European Central Bank has not changed main interest rates

The European Central Bank (ECB) in accordance with the expectations of the market has retained the three main interest rates.

The ECB statement regarding the decision on monetary policy states that the bank retained the refinancing rate at the level of 4.50 %, the deposit rate is at 4 %, and the marginal funding rate at 4.75 %.

Thus, at the third meeting on monetary policy this year, for the fifth time in a row, 3 key rates were left unchanged, and interest rates remained at the highest level in the entire history of the euro.

After July 2022, the ECB at 10 meetings in a row raised interest rates in total by 450 basic points.

ECB continued to increase interest rates last year. In September 2023, the refinancing rates are set at the level of %4.50.

The ECB statement on the decision on interest rates uses the wording: “The Council of the Managers decided not to change 3 key interest rates.”

The statement says that inflation continues to decline due to reducing food prices and goods. According to the information of the ECB, most of the key indicators of inflation improved, and the growth of wages slowed down.

“The terms of financing remains limiting. Cast promotions of interest rates continue to exert pressure on demand. Such a situation helps to reduce inflation. However, internal price pressure remains strong and supports the inflation of prices for services at a high level,” ECB notes.

ECB intends to achieve the target level of inflation of 2 percent in the medium term. Key interest rates are at the levels that will make a significant contribution to the current disinforcement process.