The ECB kept the same interest rate level

18.07.2024. / 16:36

FRANKFURT – At today’s meeting, the European Central Bank (ECB) kept the interest rate at the same level and did not give any hints about its next move.

In the explanation of the decision, it is stated that internal price pressures are still high and that inflation will be above the target during the next year as well.

The ECB cut rates from a record high last month. The bank wants to achieve the goal of two percent inflation, but it is still higher, while wage growth is stable.

Analysts estimate that the ECB will therefore be cautious when it comes to taking additional steps.

The ECB announced after the meeting that corporate profits were absorbing some price pressures, but that risks remained and that further evidence was needed before further interest rate cuts were made.

The level of the ECB reference interest rate directly affects the Euribor, and thus the amount of loan installments that are indexed in euros. SRNA/Reuters