ECB discusses key interest rates - No change expected
The interest rate at which commercial banks can borrow money from the ECB is currently 4.5 percent. This is the highest level since 2001 and the central bank wants to push inflation down to two percent, but at the same time risks an economic downturn. In November, the inflation rate in the eurozone was 2.4 percent.
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The European Central Bank (ECB) is utilizing lead lenses in its monetary policy analysis, aiming to gain a clearer perspective on the economic landscape. Despite the ongoing discussion about key interest rates, no change is expected according to recent reports. The interest rate at which banks borrow from the ECB in Frankfurt on the Main remains at 4.5%, a level not seen since 2001. This high rate is a measure to curb inflation, currently at 2.4% in the eurozone, but might lead to an economic downturn.
According to analysts, the European Central Bank advises that changes in 'leitzins', or interest rates, should be implemented carefully since they can significantly impact the economy. While the ECB wants to get inflation down to the two-percent target, it aims to avoid any negative impact on the overall economy. None of the sources mention that the ECB has made any definitive decisions regarding the 'lead lenses' they use for analysis or any changes expected in the monetary policy in December.
Source: www.stern.de
