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ECB: Difference between revisions
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* The policymakers suggested that the interest rates are now at a level deemed as the peak and that future decisions will be informed by incoming data.<blockquote>“Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target. The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary. The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction,” the statement said.</blockquote> | * The policymakers suggested that the interest rates are now at a level deemed as the peak and that future decisions will be informed by incoming data.<blockquote>“Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target. The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary. The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction,” the statement said.</blockquote> | ||
* The market was largely divided on the ECB’s next move but by Thursday morning the prabability of an hike had risen to 63% following a Reuters article which said the ECB expects euro zone inflation to remain above 3% in 2024. | * The market was largely divided on the ECB’s next move but by Thursday morning the prabability of an hike had risen to 63% following a Reuters article which said the ECB expects euro zone inflation to remain above 3% in 2024. | ||
=== October 26 2023 === | |||
* ECB holds interest rates steady, as was expected by the market.<ref>https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.mp231026~6028cea576.en.html</ref> | |||
* The deposit rate will remain at 4%. | |||
* ECB said the “incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook” for inflation to reach 2.0%. | |||
<blockquote>“Inflation is still expected to stay too high for too long, and domestic price pressures remain strong. At the same time, inflation dropped markedly in September, including due to strong base effects, and most measures of underlying inflation have continued to ease. The Governing Council’s past interest rate increases continue to be transmitted forcefully into financing conditions. This is increasingly dampening demand and thereby helps push down inflation."<blockquote> | |||
== References == | == References == | ||