Tight financing conditions are reducing demand and this is helping to reduce inflation, the ECB points out
The European Central Bank kept interest rates unchanged today as the latest developments broadly confirmed its earlier assessment of the medium-term outlook for inflation.
Apart from the upward impact on inflation, which is due to energy, the downward trend in core inflation has continued and previous interest rate increases are still strongly transmitted to funding conditions. Tight financing conditions are reducing demand and this is helping to reduce inflation, the ECB points out.
After this, the three key ECB interest rates, namely the main refinancing rate and the marginal funding facility and the deposit facility will remain unchanged at 4.50%, 4.75% and 4% respectively.
