European Central Bank maintains interest rates unchanged

On Thursday, the 14th of December, the European Central Bank decided to maintain interest rates unchanged for the second consecutive meeting.
During the meeting of ECB Council in Frankfurt, it was decided to maintain the main refinancing operations rate at 4.5%, the deposit facility rate at 4% and the marginal lending facility rate at 4.75%.
Previously the ECB had increased interest rates ten times in a row.
“The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner. Based on its current assessment, the Governing Council considers that the key ECB interest rates are at levels that, maintained for a sufficiently long duration, will make a substantial contribution to this goal. The Governing Council’s future decisions will ensure that its policy rates will be set at sufficiently restrictive levels for as long as necessary,” the ECB announcement mentions.
“The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction. In particular, its interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission,” the announcement explains.
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