The European Central Bank (ECB) announced the interest rate decision. In parallel with the expectations, the bank reduced the deposit interest rate from 2.25 percent to 2 percent, the main refinancing interest rate from 2.40 percent to 2.15 percent, and the marginal funding interest rate from 2.65 percent to 2.40 percent.
Analysts who participated in Bloomberg’s survey also expected interest rates to be reduced to quarter points.
In the monetary policy text, “ECB will follow a data -based and meeting basis to determine the appropriate monetary policy stance, especially under exceptional uncertainties. Decisions, incoming economic and financial data will be based on the evaluation of the inflation appearance in the light of the power of the underlying inflation and the power of monetary policy transmission.
“Most inflation criterion shows that inflation will set up in a target of around 2 percent,” the statement said.
The bank also announced its new projections. 2026 inflation estimate was reduced to 1.6 percent, while the estimation of 2027 remained at 2 percent.
2025 growth forecast was left at 0.9 percent. 2026 growth forecast was withdrawn from 1.2 percent to 1.1 percent.
