The European Central Bank cuts spending for the second time in a row interest rate 25 basis points and left them at 3.25%. He thus understands that inflation is more under control. In fact, prices in Europe are at 1.7%. its lowest level in 3 years.
The most recent information released by the European entity regarding the issue of inflation shows that the disinflation process continues as planned and without unforeseen events. Regarding the inflation outlook are also affected by recent surprises to the decline in economic activity indicators. At the same time, financing conditions remain restrictive.
The Governing Council of the ECB, meeting in Ljubljana (Slovenia), also lowered the deposit rate – which remunerates excess reserves from day to day and constitutes its reference rate – for the third time since the start of the year , at 3.25%. Likewise, the main financing operations (OPF) – the weekly injections of money – and the credit facility – that which lends to the banks A day- They amount to 3.4% and 3.65%respectively.
The European Central Bank justified this reduction, in particular for the deposit facility – interest rate thanks to which the Governing Council guides the direction of monetary policy– is based on its updated assessment of the inflation outlook, underlying inflation dynamics and the intensity of monetary policy transmission.
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