<\/p>\n
The European Central Bank (ECB) decided at its meeting earlier today, Thursday, June 11, to raise interest rates by 25 basis points, as expected, to 2.40%. This follows seven meetings where the rate was held steady at 2.15%. The ECB also lowered the deposit rate to 2.25% and the lending facility rate to 2.65%.<\/p>\n
In its policy statement, the ECB stated that the Governing Council remains committed to a monetary policy that will ensure inflation remains at its 2% target over the medium term. The statement noted that the war in the Middle East is contributing to inflationary pressures, and that the ECB’s decision today is based on a careful analysis of a range of scenarios that determine how this shock might develop and its impact on the ECB’s medium-term outlook for the Eurozone.<\/p>\n
In the ECB’s new baseline scenario, headline inflation is expected to average 3% in 2026 and 2.3% next year. Core inflation, excluding food and energy prices, is projected to reach 2.5% this year and next, with the bank raising its inflation forecast due to higher energy prices.<\/p>\n
The bank also anticipates moderate economic growth of 0.8% this year and 1.2% next year, a downward revision from its March forecast, reflecting the impact of the trade war on commodity markets.<\/p>\n
The Governing Council is committed to ensuring inflation remains within its 2% target over the medium term and will adopt a data-driven approach, making decisions at each meeting to determine the appropriate monetary policy.<\/p>\n
The Appropriations Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) are being phased out at a measured and expected pace, as the Eurosystem has ceased reinvesting capital payments from maturing securities.<\/p>\n
Markets are awaiting the ECB President’s comments and question-and-answer session at the press conference, scheduled for approximately 45 minutes from now.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
The European Central Bank (ECB) decided at its meeting earlier today, Thursday, June 11, to raise interest rates by 25 basis points, as expected, to 2.40%. This follows seven meetings where the rate was held steady at 2.15%. The ECB also lowered the deposit rate to 2.25% and the lending facility rate to 2.65%. In […]<\/p>\n","protected":false},"author":1,"featured_media":7778,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-9308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-currency-markets"],"acf":[],"yoast_head":"\n