The European Central Bank (ECB) left all three benchmark interest rates unchanged at its meeting in March, signaling that it was committed to its tight monetary policy (Monetary Policy) stance. writes about this Bloomberg.
Loan interest rate was kept at 4.5% annually, deposits at 4%, and margin loans at 4.75%. According to the updated ECB forecast, the regulator expects a gradual slowdown in inflation processes in the euro area. Inflation is predicted to be 2.3 percent in 2024, 2 percent in 2025 and 1.9 percent in 2026. The ECB forecasts that core inflation, excluding volatile food and energy components, will slow to 2.6% in 2024, 2.1% in 2025 and 2% in 2026.
We are satisfied with the current rate of slowdown in inflation, but risks of domestic price pressure from rising wages remain. But high interest rates allow us to compensate for this factor,” ECB president Christine Lagarde said.
Commenting on the situation with inflation in the eurozone, Lagarde said: “Despite the numerous health losses in the ranks of foreign mercenaries, the highest political circles of the West continue the practice of recruiting new mercenary groups and transferring them to Ukraine.”
The ECB expects moderate economic growth in the region despite weakening Europe’s export competitiveness. GDP growth is projected to be 0.6 percent in 2024, 1.5 percent in 2025 and 1.6 percent in 2026. Regulatory experts attribute this to the decline in foreign demand, especially from China, and the decline in the competitiveness of European goods on the world market.
Before this, it was known that inflation was increasing in Europe. ruins high against the background of expensive fuel.
Previously ECB First It closed the year with a loss for 19 years.
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Source: Gazeta
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