The monetary policy statement issued by the European Central Bank today, Thursday, includes the following points: The Governing Council decided today to keep the three key interest rates of the European Central Bank unchanged.
Inflation remains close to the Bank's medium-term target of 2%, and the Council's assessment of overall inflation expectations has not changed.
The European economy continues to grow despite the challenging global environment, reflecting its resilience to external economic challenges.
Astrong labor market, solid balance sheets in the private sector, and previous interest rate cuts by the Governing Council remain key sources of economic resilience within the euro area.
However, future projections remain uncertain due to ongoing global trade disputes and geopolitical tensions.
The European Central Bank reaffirms its commitment to ensuring inflation stability at the level of 2% in the medium term, adopting a data-dependent approach and making decisions from one meeting to the next to determine the appropriate monetary policy stance.
Decisions regarding interest rates by the European Central Bank will be based on its assessment of inflation expectations and the risks surrounding them in light of incoming economic and financial data, as well as core inflation dynamics and the effectiveness of the transmission of monetary policy.
The European Central Bank does not commit to a pre-set path for interest rates, preferring full flexibility in accordance with changing economic conditions.
The key interest rates of the European Central Bank remain unchanged at the following levels: Deposit facility: 2.00%, Main refinancing operations: 2.15%, Marginal lending facility: 2.40%
Regarding the Asset Purchase Program (APP) and the Pandemic Emergency Purchase Program (PEPP), the Governor of the two programs is witnessing a gradual and systematic decline, as the European system has stopped reinvesting capital payments from maturing securities.
The European Central Bank has expressed its readiness to adjust all its tools within its powers to ensure inflation stability at the target level of 2% in the medium term and to maintain the efficiency of monetary policy transmission across the European financial system.
The European Central Bank also emphasized that the instrument for protecting monetary policy transmission remains available to address unjustified or irregular market dynamics that may pose a threat to the transmission of monetary policy within euro area countries, enabling it to achieve its price stability target more effectively.
Note: The Governor of the European Central Bank, Christine Lagarde, is scheduled to make detailed statements about these decisions and the considerations on which they were based at a press conference scheduled for 14:45 Central European Time today.
