FRANKFURT, March 7 — Amid growing calls for interest rate cuts, the European Central Bank (ECB) is to set its future monetary policy course on Thursday.
It is generally expected that the Frankfurt-based central bank will leave key interest rates in the eurozone unchanged, reported dpa news.
The decision will be announced at 2:15 pm (1315 GMT) which will be followed by a statement from ECB President Christine Lagarde 30 minutes later.
The main refinancing operations rate, which provides liquidity to the banking system, stands at 4.5 per cent. The ECB’s deposit rate, which credit institutions receive when they park money at the bank, stands at a record 4 per cent.
The ECB ended its long era of zero and negative interest rates in July 2022. The central bank has raised interest rates ten times in a row since July 2022 to get a grip on inflation.
As this makes loans more expensive, it can curb demand and counteract high inflation rates. However, more expensive financing is also a burden for companies and private investors.
Given the weakening economy and easing inflation, there are increasing calls for interest rates to be cut again.
— Bernama
