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The president of the European Central Bank (ECB), Christine Lagarde, speaks to present the annual report 2024 of the Bank to the European Parliament, in Strasbourg, east of France, on February 10, 2025.
Frederick Florin | AFP | Getty images
The European Central Bank reduced interest rates at 25 basic points and updated the language in its decision to say that monetary policy was becoming “significantly less restrictive.”
The cut carries the rate of the ECB deposit installation, its key rate, to 2.5%, a movement in which the markets had a price before the ad.
The six rate cuts of the Central Bank in the last nine months have arrived in the midst of mediocre economic growth in the region, and as the spectrum of tariffs on EU imports to US looms. UU.
“Monetary policy is becoming significantly less restrictive, since interest rate cuts are causing new loans to be less expensive for companies and homes and loans are being recovered,” said the Central Bank in a statement on Thursday.
The inflation of the Euro Zone holder remains below the 3%brand, despite resuming in the last months of 2024.
The data published earlier this week showed that inflation In the region it decreased to 2.4% in February, below the reading of January, but it arrived a little higher than expected. The so -called central inflation, which eliminates food, energy, alcohol and tobacco costs, as well as the inflation of services also submerged after proven to be sticky for several months.
Meanwhile, the Gross Domestic Product seasonally adjusted from the euro zone Eurostat presented.
Tariff uncertainty
The decision of the rate on Thursday occurs when the president of the United States, Donald Trump, pursues an aggressive world rates policy and European leaders seek to increase defense expense.
Tariffs on goods imported to the United States from Europe have not yet been announced, but have been repeatedly threatened by Trump. The scope of these duties is currently not clear, and the negotiation option could be On the table.
European countries are also looking to increase their defense and security. budgetas relations between the United States and Ukraine have done so sour. An increase in defense spending could affect key economic markers such as inflation and growth.
Analysts told CNBC that these geopolitical developments could give rise to more disagreement of the usual Within the Governing Council of the ECB when it comes to monetary policy decision making in the coming months.
The officials have also appeared divided into the place where the so -called “neutral rate”, where politics is not stimulating or restrictive, is found and if the rates may need to go under it to help attract economic expansion.
This is a last minute news. Update the updates.
