The signs are not negative, but the ECB continues to hold the handbrake on the cost of money. The European Central Bank decided to leave interest rates unchanged at 4.50 percent.
European economic authorities themselves claim the goodness of the choices made so far: “In addition to the upward base effect on general energy-related inflation, the underlying downward trend in inflation continues and the past increases in interest rates continue. In its note, the European Central Bank said, “Financing conditions are strong It will be reflected in some way. “Restrictive financing conditions slow down demand and contribute to the decline in inflation,” he warned.
Frankfurt also slowed banks’ deposit rates with the ECB (4%) and rates on marginal refinancing operations (4.75%). Therefore, we will have to wait the next few months for the desired rate reduction, on which the cost of our mortgages or the finances of businesses and families also depend. As long as new winds of crisis, especially the Red Sea, do not disrupt the still very critical picture again.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
