ECB leaves interest rates unchanged

The European Central Bank (ECB) kept interest rates at a record high of 4.00 per cent, while those on main and marginal refinancing operations are confirmed at 4.5 and 4.75 per cent respectively, the bank said in a statement on Thursday.

The latest projections show a downwards revision in inflation, particularly for 2024, mainly due to lower energy prices. The projected average inflation rates are 2.3 per cent in 2024, two per cent in 2025, and 1.9 per cent in 2026, the statement added.

“Although most measures of underlying inflation have eased further, domestic price pressures remain high, in part owing to strong growth in wages,” the ECB said in the statement.

The Governing Council is prepared to use all available tools to bring inflation back to its two per cent target and maintain the effectiveness of monetary policy transmission.

The Transmission Protection Instrument helps the Governing Council fulfil its mandate of maintaining price stability more effectively.