The European Central Bank (ECB) announced on Thursday its decision to keep the key interest rate the same for the fifth consecutive time, maintaining the main refinancing operations one at 4.50%, the marginal lending facility one at 4.75%, and the deposit facility one at 4.00%.
The institution explained it based its decision on the recent data, which showed a decline in inflation, particularly relating to food and goods, weakened underlying risks to the figure, and a moderating rise in wages. Additionally, the ECB predicted consumer prices will go down to their target of 2% "in a timely manner."
"If the Governing Council's updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction," the ECB concluded.
