Connect with us

Published

on

New rate cut by the European Central Bank: deposit rate drops to 2.25 per cent. Lagarde: “Unanimous decision, but trade tensions dampen growth”

The European Central Bank decided today, Thursday 27 April, on a new interest rate cut of 25 basis points, continuing the normalisation of monetary policy. The rate on deposits drops from 2.50% to 2.25%, the rate on main refinancing operations from 2.65% to 2.40%, and the rate on marginal loans from 2.90% to 2.65%.

The decision, as explained by President Christine Lagarde at a press conference, was taken unanimously by the Governing Council. Underlying the measure is “an updated assessment of the inflation outlook, core inflation dynamics and the intensity of monetary policy transmission”.

According to the Eurotower’s official note, “the disinflationary process is well on track” and overall and core inflation declined in March, confirming the experts’ forecasts. The ECB’s goal remains to keep inflation stable at around 2 per cent in the medium term.

Monetary policy, Lagarde clarified, will continue to be data-driven, with no constraints on a precise rate path. Decisions will therefore be taken “from time to time at each meeting”, taking into account the updated economic and financial outlook.

Trade tensions and global uncertainty

Despite positive signs on the inflation front, the economic outlook for the euro area remains weak. According to the ECB, rising global trade tensions are adversely affecting household and business confidence, potentially affecting access to credit and financing conditions.

Lagarde pointed out that “tariffs will have a negative impact on Eurozone growth”, while the effects on inflation will be more visible over time. The tightening of tariffs – which have already risen from an average of 3% to 13% on many goods – represents a negative shock on demand, with effects varying depending on the geographical areas involved.

Finally, the ECB president recalled that the European Commission is considering countermeasures, including the “zero-for-zero” option put forward against the Trump administration. A differentiated response will be needed to address the heterogeneous impact of trade tensions on the economic stability of the euro area.

THE LATEST NEWS

Corruption in Ukraine: NABU indicts MPs over vote selling

Corruption in Ukraine under scrutiny as NABU indicts several MPs accused of selling votes in parliament and reports obstacles to...
Read More
Corruption in Ukraine: NABU indicts MPs over vote selling

Epstein Documents Reveal Trump Trips on Private Jet Multiple Times

New Epstein documents reveal Trump trips on the financier’s private plane, showing multiple flights with Ghislaine Maxwell and family members...
Read More
Epstein Documents Reveal Trump Trips on Private Jet Multiple Times

US sanctions EU officials, former commissioner Thierry Breton targeted

US sanctions EU officials over digital policies, banning five European figures including former EU commissioner Thierry Breton. Washington cites censorship...
Read More
US sanctions EU officials, former commissioner Thierry Breton targeted

Car Hits Crowd at Nunspeet Christmas Parade, Nine Injured

At least nine people were injured in a Nunspeet Christmas parade accident in the Netherlands. Police say it appears accidental,...
Read More
Car Hits Crowd at Nunspeet Christmas Parade, Nine Injured

China EU Dairy Tariffs Spark Tensions on European Dairy Exports

China imposes tariffs on EU dairy products, affecting milk and cheese exports. European authorities warn of trade challenges and potential...
Read More
China EU Dairy Tariffs Spark Tensions on European Dairy Exports

Trump pardon for Ghislaine Maxwell under consideration, says brother

Trump pardon for Ghislaine Maxwell may be requested if her latest appeal is rejected, her brother says, citing alleged judicial...
Read More
Trump pardon for Ghislaine Maxwell under consideration, says brother

(Photo: © AndKronos)

Di Tendenza/Trending