The European Central Bank (ECB) has done the same this Thursday, cutting interest rates again 25 basic pointsat its first 2025 meeting. Consequently, interest rates applicable to the ease of deposit, to the main financing operations and the marginal credit ease They will decrease to 2.75 %, 2.90 %and 3.15 %, respectively, with effects from February 5, 2025.
In this way, and in order to give oxygen to a deteriorated economy, the ECB makes its fourth consecutive reduction in interest rateswhich are currently located at their lowest level since March 2023.
The ECB’s decision comes in a scenario where inflation in the euro zone is at levels close to the 2%target; Thus, in December he rebounded two tenths, up to 2.4%, in the line with the provisions of the supervisor, which had already warned of a possible increase in inflation at the end of the year.
In this sense, the ECB note indicates that «the disinflation process continues to advance. inflation He has continued to show an evolution in general according to the projections of the experts and will probably return to the objective of 2% in the medium term of the Governing Council throughout this year. Most indicators of underlying inflation suggest that inflation will stabilize around the target in a sustained way. Internal inflation remains high, mainly because salaries and prices in some sectors are still adjusted to the previous escalation of inflation with considerable delay. However, salaries are being moderated as expected, and the benefits are partially cushioning the impact on inflation. «
The Governing Council has the determination of «ensuring that inflation is sustained in its medium -term 2% target, and will apply a data -dependent approach, in which decisions are taken at each meeting, to determine The appropriate orientation of monetary policy. »
The size of the app and PEPP wallets It is decreasing at a measured and predictable pace, since the Eurosystem has stopped reinvesting the main values that are overcoming.
Keys in Lagarde speech
In her subsequent press conference the president of the ECB, Christine Lagarde, Has highlighted:
- «The 25 -point cut decision has been unanimous.» «The decrease of 50 basic points was not on the table.»
- «The economy will remain weak in the short term.»
- «The manufacturing sector continues to be contracted, while the service activity is expanding.»
- «The labor market is still robust, which will support consumption.» However, «we think the salary pressure will fall.»
- «If commercial tensions do not increase, exports should support recovery as global demand increases.»
- The main risks for economic growth (although they remain down) will be: geopolitical risks such as Russia-Ukraine and the Middle East, that inflation rises again (if salaries press or benefits rise exaggeratedly, or climatological events They trigger the price of food products).
- «The risk of greater friction in global trade could weigh on the growth of the euro zone.»