The ECB has decided to leave interest rates unchanged.
The rate on main refinancing remains unchanged at 4.50%, that on deposits at 4%, and that on marginal loans at 4.75%.
It is the fourth pause in the cycle of ten consecutive increases that began in July 2022.
The ECB has
cut its inflation estimate
for the euro area compared to its December forecasts.
According to the new estimates, inflation will reach 2.3% in 2024 (from 2.7% previously), 2% in 2025 (from 2.1%) and 1.9% in 2026.
The ECB has revised
its growth estimates for 2024 downwards to 0.6% (from 0.8% in December)
.
Economic activity is expected to remain moderate in the short term, and then grow by 1.5% in 2025 and 1.6% in 2026, supported initially by consumption and, later, also by investments.
LIVE OF THE PRESS CONFERENCE
Lagarde: inflation drops, pressure from wages remains
“Although most inflation indicators have slowed further, domestic inflationary pressures remain, especially wage growth.”
The president of the European Central Bank, Christine Lagarde, said this in the press conference at the end of the meeting.
Economic activity remains weak
, consumers continue not to spend, investments remain moderate and companies export less, but polls indicate a gradual recovery thanks to falling inflation and wages that continue to rise". ECB President Christine Lagarde at the end of the Governing Council meeting.
"We are in the middle of the disinflation process, we are making good progress and we are more confident but we are not yet sufficiently sure" that inflation will return to target.
“Clearly we need more data that will arrive in the coming months, we will know more in April and much more in June.”
"Economic activity remains weak, consumers continue not to spend, investments remain moderate and companies export less, but surveys indicate a gradual recovery thanks to falling inflation and wages that continue to rise," Lagarde added. .
The Governing Council of the ECB has "unanimously agreed on a new position on the European Capital Markets Union, which affirms the imperative to move faster" in the direction of unifying European financial markets, the President said. of the European Central Bank, recalling that the ECB had taken a position in 2020, on the occasion of the European Commission's action plan, but has now decided to "significantly strengthen" its position.
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