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On Thursday, the ECB lowered all three main interest rates by 25 basis points as anticipated. They were reduced eight times over the last year. The current deposit rate is 2 percent, the main refinancing operations (MRO) rate is 2.15 percent, and the marginal lending rate is 2.4 percent.
The majority of the regulator's leadership thinks that a deposit rate of about 2 percent aligns with a neutral monetary policy level, meaning it neither hinders nor encourages economic activity in the eurozone.
“We are approaching the conclusion of a monetary policy phase in which we have reacted to several disruptions, such as the coronavirus and the energy crisis,” Lagarde informed reporters in Frankfurt. “With the current interest rates, we are well-prepared to manage the uncertainty that is forthcoming.”
Economists commonly anticipate that following the rate cut in June, the ECB will pause next month before lowering borrowing costs for the final time in September.
source: reuters.com
The majority of the regulator's leadership thinks that a deposit rate of about 2 percent aligns with a neutral monetary policy level, meaning it neither hinders nor encourages economic activity in the eurozone.
“We are approaching the conclusion of a monetary policy phase in which we have reacted to several disruptions, such as the coronavirus and the energy crisis,” Lagarde informed reporters in Frankfurt. “With the current interest rates, we are well-prepared to manage the uncertainty that is forthcoming.”
Economists commonly anticipate that following the rate cut in June, the ECB will pause next month before lowering borrowing costs for the final time in September.
source: reuters.com