The European Central Bank (ECB) Governing Council decided today to keep the ECB's three key interest rates unchanged.
The interest rates for the main refinancing operation, marginal lending facility and deposit facility remain unchanged at 4.25%, 4.50% and 3.75%, respectively.
The European Central Bank today decided to keep the interest rates on its main refinancing operations and its marginal lending and deposit facilities unchanged at 4.25%, 4.5% and 3.75%, respectively. Domestic price pressures remain high and headline inflation is likely to remain above its target next year, the bank said.
One-off factors caused some underlying inflation measures to rise slightly in May, but most measures remained stable or fell slightly in June.
As expected, the inflationary impact of high wage growth is being mitigated by profits. Monetary policy is keeping financing conditions restrictive, an official statement said.
At the same time, it noted that domestic price pressures remain high, with services inflation rising and headline inflation likely to remain above the target over the next year.
The ECB is determined to ensure that inflation returns to its 2% medium-term objective in a timely manner and will keep its policy rate well within reason for as long as necessary to achieve this goal.
Fibre2Fashion News Desk (DS)
