January 25, 2024
On January 25, 2024, the Governing Council made the decision to keep the three key interest rates set by the European Central Bank (ECB) unchanged. Therefore, the interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility will all remain unchanged at 4.50%, 4.75%, and 4.00%, respectively.
The latest information aligns with the prior assessment of the medium-term inflation outlook. Despite a temporary increase in headline inflation due to energy-related factors, the overall trend shows a persistent decline in underlying inflation. Previous interest rate hikes are effectively influencing financing conditions, resulting in tight credit, which, in turn, is suppressing demand and contributing to the downward pressure on inflation.
The Governing Council is committed to achieving the 2% inflation target promptly. It believes that the current key ECB interest rates, if maintained for an extended period, will significantly contribute to reaching this goal. Future decisions by the Governing Council will prioritize setting policy rates at appropriately restrictive levels for as long as needed to support the return of inflation to the target.
The Governing Council will maintain a data-dependent approach in deciding the suitable level and duration of restrictive measures. Interest rate decisions will be guided by an assessment of the inflation outlook, considering incoming economic and financial data, underlying inflation dynamics, and the effectiveness of monetary policy transmission.
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