ECB maintains interest rates for fifth time in a row

The European Central Bank (ECB) left interest rates unchanged this Thursday for the fifth time in a row, with the main refinancing rate at 4.5%.

The interest rate applicable to the standing liquidity facility remains at 4.75% and the deposit rate at 4%.

“Inflation continues to fall, driven by lower food and commodity prices. Most measures of core inflation are slowing, wage growth is gradually slowing, and companies are absorbing some of the increase in labor costs,” the ECB said in a statement. published after the monetary policy meeting.

The ECB also believes that “financing conditions remain restrictive and previous interest rate hikes continue to weigh on demand, helping to reduce inflation.”

“However, internal pressure on prices is strong and keeps service price inflation at a high level,” he noted.

Despite confirming that it is “determined to ensure inflation returns to its medium-term target of 2% in a timely manner,” the ECB has indicated that if such dynamics continue, it may cut interest rates.

“If an updated assessment of the inflation outlook, underlying inflation dynamics and the strength of monetary policy strengthens the Governing Council’s confidence that inflation is steadily approaching target, it would be appropriate to reduce the current level of monetary policy constraints. “, the message says.

The annual inflation rate slowed to 2.4% in March from 2.6% in February, according to a preliminary estimate released by Eurostat last week.