The ECB decides on interest rates in the Eurozone
In response to high inflation, the ECB (European Central Bank) raised interest rates in the Eurozone ten times in a row starting from June 2022. However, during its June meeting, the council decided for the first time since 2019 to lower them, but it also stated that it was not certain that further rate hikes would follow. Therefore, a pause in rate hikes was necessary, as the development of inflation remains uncertain.
The ECB's decision to lower interest rates during its June meeting was a shift from the Leitzinsen increases that occurred eleven times straight, starting in June 2022. Christine Lagarde, the president of the ECB, highlighted the uncertainty surrounding monetary policy and the development of inflation in the European room. Despite this, some analysts in Frankfurt am Main questioned whether the pause in rate hikes signaled an end to the tightening cycle or merely a pause before additional Leitzinsen adjustments.
