Sanziana Perju / ECB
The European Central Bank (ECB) declared in a statement that the deposit rate remained at 4%, the base lending rate at 4.5%, and the rate on marginal loans at 4.75%.
"Most measures of underlying core inflation are declining, wage growth is gradually slowing, and part of the increase in labor costs is being absorbed in corporate profits," reads the statement.
The ECB stated that weaker consumer price inflation is a result of ongoing demand dampening caused by restrictive financial conditions and previous rate hikes.
The ECB Governing Council is adamant about seeing inflation return to its medium-term goal of 2%. According to the press release, "the council believes that key rates are at a level that contributes significantly to the current disinflation process."
"Future decisions by the council will ensure that key rates remain at sufficiently restrictive levels for as long as necessary," the statement continued.
source: ecb.europa.eu
"Most measures of underlying core inflation are declining, wage growth is gradually slowing, and part of the increase in labor costs is being absorbed in corporate profits," reads the statement.
The ECB stated that weaker consumer price inflation is a result of ongoing demand dampening caused by restrictive financial conditions and previous rate hikes.
The ECB Governing Council is adamant about seeing inflation return to its medium-term goal of 2%. According to the press release, "the council believes that key rates are at a level that contributes significantly to the current disinflation process."
"Future decisions by the council will ensure that key rates remain at sufficiently restrictive levels for as long as necessary," the statement continued.
source: ecb.europa.eu
