The European Central Bank decided at its meeting moments ago today, Thursday, July 24, to keep its three main interest rates unchanged. The deposit rate was kept at 2%, the main refinancing operation at 2.15%, and the lending facility at 2.40%, following seven consecutive rate cuts.
The bank’s interest rate statement stated that inflation remained at the 2% target, domestic price pressures had eased, and wage growth slowed. The information received is consistent with the Council’s previous assessment of the inflation outlook, as the economy has so far demonstrated resilience in a challenging global environment.
The asset purchase program (APP) and the pandemic emergency purchase program (PEPP) are tapering at a measured and expected pace, as the European system has stopped reinvesting capital payments from maturing securities.
The European Central Bank affirmed its determination to ensure sustained inflation stability at its 2% target. The bank will follow a data-driven approach, meeting by meeting, to determine the stance of monetary policy. It announced its readiness to adjust all tools to ensure inflation stability. Markets are awaiting the European Central Bank President’s comments and response to journalists’ questions at the press conference, which will take place approximately 45 minutes from now.