He European Central Bank (ECB) lowers official interest rates again after the September cut. It is the second time that it has chosen to lower the price of money in a row and the third time this year. A movement expected by the market for a few weeks in light of the statements of several members of the government council of the institution.
The monetary organization has undertaken a rate drop of a quarter of a point, the same as in September, and leaves the deposit facility rate, which is the one now used as a reference, at 3.25%. The rate on main financing operations remains at 3.4% and the marginal credit facility at 3.65%.
The mandate that the ECBIn his case, it is to maintain price stability in the euro zone, something that has been complicated by the inflation crisis in the past two years. Now the situation is very different. Eurozone inflation fell to 1.7% in September, even below the ECB’s target, reaching its lowest level since April 2021, when it stood at 1.6%. Thus, it has had three consecutive months of decline.
With these numbers, the institution has the freest path to continue lowering rates. And even more so if we take into account the situation of stagnation in the eurozone, with several countries suffering from the level of growth, as is the case of Germany.
Beyond that, this may not be the last time the ECB will lower rates this year. Analysts point out that At the December meeting they could decide once again to continue easing monetary policy. Even so, the institution, as it has mentioned repeatedly, makes its decisions based on the evolution of the most recent data, so there will be more clarity about that next meeting as the date approaches.
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