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ECB Decides on Key Interest Rates - Reduction Expected
2024-09-12 05:50:08
Economy
Finance
Business

ECB Decides on Key Interest Rates - Reduction Expected

The European Central Bank (ECB) is expected to lower key interest rates in its upcoming meeting to stimulate the economy. Inflation has fallen, but core inflation remains high, presenting a challenge for the ECB.

However, the Bundesbank warns against a too rapid easing of interest rates, as it can slow down the economy. The ECB must carefully balance the risk of inflation with the need to adjust interest rates.

The decision will be announced on Thursday in Frankfurt, and ECB President Christine Lagarde will explain the bank's decision in a press conference.

Related news on that topic:

ECB Cuts Key Interest Rates: What You Need to Know

The European Central Bank (ECB) has decided to lower key interest rates by 0.25 percentage points. The deposit rate now stands at 3.5% and the key rate at 4.1%, narrowing the gap between the two to 0.15 percent. Inflation in the euro area is approaching the 2% target after a wave of inflation, but core inflation remains stubborn. The ECB has presented new forecasts for inflation and growth. However, the Bundesbank has warned against too rapid easing. As a result of the rate cut, mortgage rates have dropped and property prices have increased by 2%, making it a good time for potential buyers to make a purchase. Savings account interest rates have also decreased and are expected to continue falling. This could lead to financial relief for borrowers. Some predictions suggest that interest rates will remain stable in 2025, while others anticipate further cuts. The ECB's decision to end its zero and negative interest rate policy in 2022 has led to the highest levels of key and deposit rates since the establishment of the monetary union. Investors should prepare for declining yields on fixed-income investments.

Central Banks Prepare for Interest Rate Cuts in Response to ... Weakening Economies

As the US economy shows signs of weakness, the Fed and ECB are considering interest rate cuts in September. The ECB is expected to make additional cuts in December. Powell, Ueda, and Lagarde are among the central bankers discussing these moves. The recent jobs report, with fewer-than-expected new jobs in August, adds to the case for larger Fed rate cuts. Market experts are closely watching Bitcoin's fate, anticipating the impact of the Fed's decisions on its price amidst economic uncertainties and market tensions. The CME Fed Watch tool indicates high probabilities of rate cuts, with traders predicting a 0.25 or 0.50-basis point cut. The Fed's policy decision is scheduled for September 18.

Read 5 more recent news on this topic

The press radar on this topic:

tz
11. September 2024 um 15:32

ECB decides on key interest rates - Reduction expected

Economy
Finance
ECB lowers key interest rates; Inflation falls, but core inflation remains high; Bundesbank warns against too rapid easing; Interest rate hikes can slow the economy; ECB must balance inflation risk and interest rate adjustment tightrope.
EL PAÍS
12. September 2024 um 03:35

The ECB is preparing its second rate cut of the year with a focus on the speed of the cuts

Economy
Finance
Politics
The good inflation data and the containment of wages have paved the way for Lagarde, and encourage the debate on whether the bank should also lower them at its October meeting to stimulate activity, which shows signs of fatigue. Your subscription is being used on another device. Your subscription is being used on another device and you can only access EL PAÍS from one device at a time. William M. Martin, the Fed's patron for 20 years, used to say that central bankers are those types who take a..
stern
12. September 2024 um 02:02

European Central Bank decides on key interest rates

Economy
Finance
Politics
After the summer break, the Governing Council of the European Central Bank (ECB) will meet again on Thursday in Frankfurt am Main to discuss monetary policy in the euro area. Observers expect a cut, after the key interest rates remained unchanged at the last meeting in July (announcement at 2:15 pm). ECB President Christine Lagarde will explain the decision of the central bankers at a press conference starting at 2:45 pm.
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