"European Central" It warns of poor economy after reducing the interest rate
Brussels on January 30 / WAM / The European Central Bank announced today that the interest rate was reduced by 25 basis points, and it is the fifth reduction since the central bank began to reduce monetary policy in June last year.
With this reduction, deposit facilities for the European Central Bank, the main interest rate, to 2.75 %. The markets were a chance of more than 90 % to reduce 25 basis points before the advertisement.
The European Central Bank works to balance the re -enlargement of inflation in the euro area in recent months and slow economic growth in the region. The main inflation in the euro area has increased for the third month in a row to 2.4 % in December, after declining to the European Central Bank of 2 %, Several months ago, it was expected to renew the recovery in inflation, as the basic effects of low energy prices fade.
Initial data showed that the eurozone economy settled in the fourth quarter of 2024.
European Central Bank President Christine Lagarde said it is likely that the economy of the euro zone will remain weak in the short term.
She added that the reduction by 50 basis points were not on the table of the Board of Directors of the European Central Bank when making his last decision on the interest rate.
The European Central Bank pointed out, in a statement, to the continuous winds of the economy … He said, “The economy still faces opposite winds, but the high real income and the gradual effects of the restricted monetary policy must support a recovery in the demand over time.”
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