FRANCOFORTE (GERMANY) (ITALPRESS) – The Governing Council of the European Central Bank has decided to maintain unchanged the three reference interest rates. In detail, interest rates on deposits at the central bank, major refinancing operations and marginal refinancing operations will remain unchanged at 2,00%, 2.15% and 2.40% respectively.
“The new information is basically in line with its previous assessment of inflation prospects, but the risk of rising inflation and the risk of falling for growth has intensified. The Governing Council undertakes to define monetary policy in order to ensure that inflation is based on the objective of 2% in the medium term – explains the ECB in a note -. The conflict in the Middle East has caused a sharp increase in energy quotations, pushing up inflation and weighing on the climate of confidence. The implications of the war on medium-term inflation and economic activity will depend on the intensity and duration of shock on energy prices as well as the extent of its indirect and second impact effects. The longer the war will continue and the longer the energy prices will remain high, the greater the likely impact on the wider measures of inflation and economy.”.
“The Governing Council is still in a favourable position to address the current uncertainty. The euro area has entered this period of strong energy revenues with an inflation around the 2% target and an economy that has shown a good holding capacity in the last quarters. Long-term inflation expectations remain firmly anchored, though shorter time horizons have increased significantly – the European Central Bank highlights. To define the appropriate monetary policy orientation, the Governing Council will closely follow the situation and adopt a data-driven approach where decisions are taken from time to time at each meeting. In particular, the decisions on interest rates will be based on its assessment of the prospects for inflation and associated risks, considered the new economic and financial data, as well as the dynamics of underlying inflation and the intensity of the transmission of monetary policy, without constraining itself to a particular path of rates.”.
– Photo IPA Agency –
(ITALPRESS).
