European Central Bank Keeps All Three Key Policy Rates Unchanged, Reflects War Impact in Economic Outlook
Consumer Inflation Forecast Raised Significantly to 2.6%
"Likely to Have a Material Impact on Short-Term Inflation"
The European Central Bank (ECB) has kept all three of its key policy interest rates, including the deposit rate, unchanged.
On March 19 (local time), the ECB announced after its monetary policy meeting in Frankfurt, Germany, that it would maintain the deposit rate (2.00% per annum), the main refinancing rate (2.15%), and the marginal lending facility rate (2.40%) at their current levels without any changes.
In its newly released economic outlook, the ECB significantly raised its forecast for the eurozone (consisting of 21 countries using the euro) consumer price inflation rate for this year from 1.9% to 2.6%. It lowered its economic growth forecast from 1.0% to 0.9%.
The ECB stated, "The war in the Middle East has made the outlook considerably more uncertain, creating upside risks for inflation and downside risks for economic growth." The bank noted that the impact of the war was reflected in its economic outlook.
Hot Picks Today
Despite "Insufficient Balance" Notices, They Board Anyway... Reports of Foreign Fare Evasion Mounting
- "If It Helps My Child's Studies, It's Worth Every Penny"... U.S. Parents Open Their Wallets for $10,000 Tests
- [Exclusive] "We Came for a KRW 140,000 Trip": Following Chinese Tourists in Korea Uncovers a 'Suspicious' Tour
- U.S. Experts: "Less Than 10% Chance of U.S.-North Korea Summit on Sidelines of November APEC Summit"
- "Baek Jongwon Had Been Quiet, Then Hit It Big"... Waits in the 100s in U.S. Despite KRW 46,000 Pork Belly
It also added, "The war is likely to raise energy prices and have a material impact on short-term inflation." The ECB explained that the medium-term impact will depend on the intensity and duration of the conflict, as well as the extent to which energy prices affect consumer inflation and the broader economy.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
