ECB President intends to maintain a firm grasp on key interest rates.

Monetary Affairs - ECB President intends to maintain a firm grasp on key interest rates.

Christine Lagarde, the head of the European Central Bank (ECB), has stated after the recent interest rate reduction: We won't see more significant interest rate decreases for now. The inflation rate in the euro area is said to reach its target of 2% by the end of this year, as per Lagarde's statement published on Saturday by the ECB online and in various European media. "We've made significant progress, but our battle against inflation is not over," she added.

"It's going to take some time until inflation vanishes entirely from the economy. There may be bumps along the way. We'll need to stay vigilant, dedicated, and steadfast on this journey," the ECB president wrote.

"To maintain long-term price stability, interest rates must remain restrictive for as long as required. In essence, we must keep our foot on the brakes for a while longer, albeit not as firmly as before," Lagarde elucidated.

Interest rates were reduced by 0.25 percentage points

"In deciding on future monetary policy moves, it will be crucial whether we can continue to observe inflation returning to our target value promptly, overall economic pressure dissipating, and our monetary policy working effectively against inflation. These factors will decide when it's time to ease up on the brakes even further," said the central bank chief.

The ECB cut interest rates by 0.25 percentage points on Thursday. It marked the first rate cut since the Central Bank rather abruptly increased rates in July 2022 as response to inflation. Interest rates had been at a record high for nearly nine months.

The deposit rate, the rate banks get for stored money, is now at 3.75%. The rate at which banks can borrow money from the central bank is now 4.25% after the decrease.

Read also:

1. The decision to reduce interest rates by 0.25 percentage points was made by Christine Lagarde, the president of the European Central Bank (ECB), in an attempt to maintain a stable economic situation in Europe.
2. Lagarde emphasized that while inflation has decreased, it is important to maintain a firm grasp on key interest rates in Frankfurt am Main to ensure that inflation does not rise again.
3. The interest rate cut is seen as a strategic move by the ECB to support the financial wellbeing of European consumers and businesses in the face of increasing prices.
4. Lagarde acknowledged that reducing interest rates will have an impact on Finances, as lower interest rates can lead to higher inflation and potentially weaker economic growth in the long term.
5. The ECB will be closely monitoring the economic situation in Europe, with a particular focus on inflation and whether it continues to decline towards the bank's target of 2%.
6. If inflation remains low, Lagarde indicated that the ECB may consider cutting interest rates further in the future to stimulate growth and support consumers and businesses.
7. Analysts have suggested that the interest rate cut may put pressure on other central banks, such as the Federal Reserve in the United States, to consider their own monetary policies in light of the ongoing global economic challenges.

• Opel has been manufacturing automobiles for a staggering 125-year duration.
• Few cars weigh under a ton in present times.
• Lack of snow also opens up new opportunities for winter tourism
• Abrupt end to e-car subsidies