US EditionECB holds rates at 2% as inflation rises and eurozone growth slows
The bank said it is waiting for more data as energy-driven price pressures and weaker growth leave policymakers weighing inflation risks against recession concerns.
- On Thursday, the European Central Bank held its benchmark deposit facility rate at 2%, signaling potential interest rate hikes later this year while adopting a meeting-by-meeting approach to monetary policy.
- Eurozone inflation jumped to 3% this month, exceeding the Bank's 2% target, as the war in Iran pushed oil prices to a four-year high, threatening a difficult inflation spiral.
- Underlying core inflation slowed to 2.2% in April from 2.3%, suggesting second-round effects remain contained; the Bank noted "the upside risks to inflation and the downside risks to growth have intensified."
- The Euro rose 0.2% to $1.17 following the decision, while financial markets now anticipate rate increases in June and July as the ECB attempts to quash any potential inflation spiral.
- Deutsche Bank economist Mark Wall noted the ECB is not pre-committing to a specific rate path, though some analysts expect a 25-basis-point increase in June to reach 2.25%.
155 Articles
155 Articles
ECB's Kocher Says Interest-Rate Hold Gives Time to Assess Risks
(Bloomberg) — The European Central Bank’s decision to hold interest rate this week provides policymakers with more time to assess whether the Middle East crisis triggers prolonged inflation, according to Governing Council member Martin Kocher.
In the Governing Council of the European Central Bank, we did not yet consider it necessary to raise interest rates this week, but it is increasingly likely that we will have to do so in the future, writes Madis Müller.
The European Central Bank (ECB) is keeping interest rates unchanged at 2 percent, but sees the economic outlook deteriorating. Due to the blockade of the...
ECB Holds Interest Rates Steady as Energy Shock Clouds Eurozone Outlook
The European Central Bank (ECB) on April 30 left its key interest rates unchanged, saying that the ongoing war in the Middle East has pushed inflation higher and dampened economic sentiment. The ECB’s Governing Council maintained the deposit rate at 2 percent, the main refinancing operations at 2.15 percent, and the marginal lending facility at 2.4 percent. The decision comes as inflation in the euro area rose to 3 percent in April, up from 2.6 …
Expensive inflation continues to rise in April, in Austria as well as in the entire eurozone. But the ECB continues to keep its feet still at the key interest rate. Why?
Coverage Details
Bias Distribution
- 40% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
