The European Central Bank (ECB) convened today in Frankfurt, Germany, announcing a reduction in the interest rate on its deposit facility to 2.00%, while the rates on the main refinancing operations and the marginal lending facility were decreased to 2.15% and 2.40%, respectively.
These changes will take effect from June 11.
In a statement released after today’s monetary policy meeting, the ECB Council emphasizes its “determination to ensure that inflation stabilizes sustainably at its medium-term target of 2%” and asserts that it “does not pre-commit to any specific rate path.”
“Especially under the current conditions of exceptional uncertainty, it will follow a data-driven and meeting-by-meeting approach to decide on the appropriate monetary policy stance,” it highlights.
Therefore, future decisions on interest rates will be based on an “assessment of the inflation outlook, considering the incoming economic and financial data, underlying inflation dynamics, and the strength of monetary policy transmission.”
