In full commercial storm for the tariffs that Donald Trump is imposing on the main commercial partners of the United States, the European Central Bank announced this Thursday a new reduction of official interest rates in the Eurozone. To stimulate a stagnant economy, The entity has approved a cut of 0.25 basic points in its reference ratesplacing the ease of credit at 2.5%.
This will involve a relief for millions of homes that have hired a variable type mortgage and will allow families and companies that want to hire a new loan opt, in principle, better financing conditions. The relief will be mild because the Euribor, the main reference for variable mortgages, has already lowered the last months and closed February in 2,407%. So far this, the monthly mean is at 2,379%.
The agency led by Christine Lagarde bases its decision on the “Updated evaluation of inflation perspectivesof the dynamics of the underlying inflation and the intensity of the transmission of monetary policy, “says the entity in its statement. The ECB insists that it will apply a data -dependent approach, in which decisions are taken at each meeting, so that the orientation of monetary policy is adequate.
Concern about uncertainty
The organism has been very concerned about the uncertainty that shakes the international economic and geopolitical landscape. Hence, you have opted for a new cut of the price of money, the sixth consecutive. However, There are more and more doubts about what he will do in his next meeting, scheduled for April 17.
The reason is that the threats of new tariffs that the Trump administration has launched are a risk to inflation that does not finish being controlled, despite having moderated up to 2.4% in February. The ECB has how medium -term objective Place inflation in 2%which is a level of rise in prices that does not damage the economy. It is neither too high nor too small (which also involves a problem because demand low and the economy ends up being).
The ECB considers that internal inflation remains high, mainly due to the fact that salaries and prices in some sectors are still adjusted to the climbing that prices recorded with a considerable delay. “However, the growth of wages is being moderated as expected, and the benefits are parting the impact on inflation,” says the body.
The hardness in Washington’s commercial policy led to the US Central Bank, the Federal Reserve, to pause the type sales at its meeting in the end of January. The official types remain in a range between 4.25 and 4.50% in the world’s first economy, so the differential between both areas is enlarged.
It is another point that the European Central Bank has to take into account, since The region is not appropriate to have a currency too weak with respect to the dollar. An example of this are raw materials, of which it is very dependent, and that the eurozone has to import in dollars.
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