ECB Maintains Restrictive Policy on Inflation Concerns
The European Central Bank (ECB) has decided to maintain the current interest rates with ongoing inflationary pressures. This decision reflects the Council's previous assessment of the medium-term inflation outlook.
Notable observations include:
- The underlying inflation measures showed mixed trends. In May, some experienced an increase due to one-off factors. For most in June, however, there was stability or a decline.
- The effect of high wage growth on inflation has been counterbalanced by the impact of increased profits.
- Monetary policy will continue to be restrictive to manage financing conditions.
Despite the current restrictive measures, domestic price pressures and services inflation remain high and headline inflation is expected to remain above target into next year. The ECB is determined to ensure that inflation returns to its medium-term target of 2% and will maintain restrictive key interest rates if necessary. Future interest rate decisions will depend on economic data, underlying inflation dynamics and monetary policy news.
Current ECB Interest Rates: