He European Central Bank (ECB) responded to analysts’ forecasts and, at the first meeting with Jose Luis Escrivá As governor of the Bank of Spain, he lowered interest rates up to 4%. The reduction of a quarter of a point of the interest rate by the ECB will give thousands of citizens a break in their mortgage, those who have referenced it to the Euribor. Instead, it will lead to a reduction in the remuneration of deposits. The body that runs Christine Lagarde gave no indication of what monetary policy the ECB will follow from now on or when another rate cut might take place.
This is the second time the ECB has cut interest rates this year, after the one recorded at the June meeting. This is despite the fact that inflation in July rose slightly by a tenth, to 2.6%. The ECB’s objective is to keep inflation in the eurozone below 2% and the decisions to raise or lower interest rates are part of this objective.
