Its basic interest rate is 2.75% with the aim of falling to 2% by June
The European Central Bank has reached a 0.25% reduction in its basic interest rates today.
The ECB’s Board of Directors at the first meeting for 2025 decided to reduce key interest rates by 0.25% to 2.75%. It is recalled that in 2024 the ECB made four equal interest rates by 1% cumulative.
It is noted that central bankers involved in the ECB’s Board of Directors have expressed different views on how much interest rates should be reduced during the year. Indicatively, Bank of Greece Governor Yiannis Stournaras and French counterpart François Vilua de Galo have been in favor of a more “aggressive policy” further reductions, considering that the deposit rate should have fallen to 2% by June. In contrast, the most conservative central bankers who are usually under the influence of the central bank of Germany, such as Dutch Claas Knot, do not seem to embrace this view.
For her part, ECB chief Christine Lagarde, who is going to analyze the reasoning of the decision during the established press conference, said last week from Davos, Switzerland that “my job as president of the ECB is to secure me to secure That we properly apply the methodology, that we make the best possible predictions, that we take into account empirical data, that we use our judgment and that we must be very careful with the rest of the world. “
