The European Central Bank decided at its meeting moments ago today, Thursday, April 17, to cut interest rates by 25 basis points, as expected, to 2.40%, while announcing that the inflation reduction process is on track.
The bank’s interest rate statement stated that inflation declined in March, with the services index declining significantly in recent months. Most indicators point to inflation stabilizing at around 2%, the bank’s medium-term target.
Conversely, growth expectations have deteriorated due to escalating trade war tensions. This uncertainty is expected to depress household and business confidence, thus directly impacting the eurozone’s economic outlook.
The European Central Bank affirmed its determination to ensure sustained inflation stability at its 2% target, especially in the current context of heightened uncertainty. The bank will follow a data-driven approach, meeting after meeting, to determine the stance of monetary policy.
Markets are awaiting comments from the ECB President, who will address journalists’ questions at the press conference in approximately 45 minutes.