The European Central Bank (ECB) on Thursday, July 18, decided not to change previous interest rates. Rates will be kept at the restrictive level as long as necessary for the stated goal of inflation not exceeding 2%. In June, we recall, the ECB lowered interest rates. At a meeting of the ECB Council in Frankfurt, it was decided to maintain the main rate on refinancing operations at 4.25%, the overnight deposit rate at 3.75%, and the overnight lending rate at 4.5%. The ECB said in a statement that the findings confirm the board's previous assessment of the medium-term inflation outlook. "Although some core inflation indicators rose in May, driven by one-off factors, most indicators were either stable or down in June. Earnings were in line with expectations, offsetting the impact of large wage increases on inflation, and financing conditions remain tight under the influence of monetary policy At the same time, domestic price pressure remains strong, service inflation is high, and core inflation is likely to remain well above target next year,” the ECB board said in a statement. The ECB has indicated that it is committed to ensuring inflation returns to its medium-term target of 2% and will therefore keep interest rates at fairly restrictive levels for as long as necessary to achieve this goal. As reported, at the previous meeting in June, all three rates were reduced by 0.25 percentage points. To combat high inflation, the ECB gradually raised interest rates to record highs over ten consecutive meetings between July 2022 and September 2023. According to Eurostat, annual inflation in the eurozone was 2.5% in June, down from 2.6% in May.
