Brussels – LHowever, domestic price pressures remain high, with high inflation in the service industryHeadline inflation “is also likely to remain above target next year”. In addition to this, there are uncertainties related to geopolitical tensions, such as Governing Council of the European Central Bank Promote caution and Keep interest rates unchangedWe remain at the levels that the ECB had set last month when it chose to cut interest rates. Thus, the main refinancing rate remains at 4.25%, the marginal refinancing rate remains at 4.5% and the deposit rate falls to 3.75%.
Even the European tower lines have not changed. To ensure price stability,2% reference target The Frankfurt Institute intends to maintain The rates are “sufficiently restrictive, as far as is necessary”, for that purpose. Here, the President of the European Central Bank reiterated that Christine LagardeIThe Council “will continue to follow a data-driven, meeting-by-meeting approach.” The friction a month ago seemed to convince people that the intention was to make a technical rather than political decision..
“We do not have a pre-determined path for interest rates and their levels“Lagarde said. This is precisely why he does not make future decisions public. “The question is what will happen in September. Our decision in September is completely open”. Therefore, there is no promise of a rate cut. But this is not ruled out. He added that in any case, “we are ready to adjust all our tools at any time”, but always “based on the data” and the development of the situation. In this regard, the No. 1 figure in the European Tower warned, “I Inflation risks remain on the upside“This could push up food prices” due to uncertainties related to extreme weather changes and ongoing conflicts.