Daily Management Review

ECB keeps base rate at 4.5pp


The European Central Bank maintained key interest rates at their current level.

The marginal lending rate was 4.75 percent, the deposit rate was 4%, and the base rate was still 4.5 percent.

"The ECB Governing Council is committed to seeing inflation reach its 2% objective again," the regulator said in a press release. "The Council believes that key rates are at a level that, if maintained for a sufficiently long period, will make a significant contribution to this objective." Key rates will stay at levels that restrict economic activity for as long as necessary thanks to future choices made by the European Central Bank.

The regulator plans to stay with the current strategy, which bases choices on incoming statistical data to decide on rate levels and how long restrictive policies will be preserved. This specifically relates to information about inflation dynamics and the extent to which monetary policy is being transmitted.

When the consumer price index in the euro area increased by a two-year low of 4.3% annually in September, the European Central Bank (ECB) observed a notable deceleration in inflation. The regulator continues to anticipate very high inflation for an extended length of time.

source: ecb.europa.eu