As expected, the CCB reduced interest rates from 25 base points, raising them from 2.5% to 2.25%. It is the sixth consecutive cut since June. Central deposit interest rates, main refinancing operations and marginal refinancing operations will be reduced to 2.25%, respectively, 2.40%and 2.65%, with effect from April 23, 2025. The ECB is known after the Board of Directors. The ECB Continues: “The PAA (Purchase Program of Activity) and the Pandemic Emergency Purchase Program) are reduced to a measred and predictable rhythm, Given that the eurosystem in the long -reinves you the capital reimbursed on the expiring securities. The Board of Directors is Ready to adapt all its tools in the context of its mandate to teach that the inflation is stabilized durable on the 2% Objective in the Medium Term and to Preserve the orderly functioning of the monetary policy transmission mechanism. ” In addition, “the tool for protecting the monetary policy transmission mechanism can be used to contrast the unjustified and disordered market dynamics that has seriously put the transmission of monetary policy in all euro countries, thus allowing the board to comply with its price mandate more effectively.”
So always the ECB, after the war for functions, knows that “the euro economy has developed a certain capacity for the seal for world shocks, but the prospects for growth got worse due to increasing commercial tensions.”
Source: IL Tempo
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.
