FX.co ★ ECB keeps key rate steady at 4%

In a recap of the year's events, the European Central Bank (ECB) appears generally satisfied with the current economic situation. While some challenges have arisen during the year, the regulator believes that they can be managed effectively. On Thursday, December 14, the Governing Council of the European regulator decided to keep interest rates unchanged. The ECB maintained the key policy rate at 4.5%, the marginal lending rate at 4.75%, and the deposit rate at 4%. The ECB's current decision aligns with market expectations and expert forecasts. According to economists surveyed by Reuters, it is anticipated that the deposit rate will remain at a record high of 4% by the end of 2023. The ECB's immediate plan is to bring inflation back to its medium-term target of 2%. According to Eurostat's estimates, in November 2023, the pace of consumer price growth in the eurozone slowed to its lowest level since July 2021. However, consumer prices in the 20 eurozone countries increased by 2.4% compared to the same month in 2022. Previously, in October 2023, this figure stood at 2.9%.