Europe’s central bank treads carefully on rate cuts

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The European Central Bank (ECB) has decided to leave key interest rates unchanged and keep the possibility of a rate cut in June open. The main refinancing operation rate, the marginal lending facility rate, and the deposit facility rate remain unchanged at 4.5%, 4.75%, and 4% respectively. The ECB stated that a rate cut would be possible depending on the incoming data and if it increases confidence that inflation is converging to the target in a sustained manner. Inflation in the euro area has been declining steadily since December 2023, reaching 2.4% in March. The ECB expects inflation to decline to its target next year. The central bank is cautious about a rate cut to avoid harming its credibility and will continue to follow a data-dependent approach. The ECB is set to publish its staff projections of economic growth and inflation in the euro area in June.

#EuropeanCentralBank #InterestRates #Inflation #EuroArea

https://borneobulletin.com.bn/europes-central-bank-treads-carefully-on-rate-cuts/