FX.co ★ ECB keeps key rate steady

The European Central Bank is characterized by permanence, especially when speaking about the key interest rate. On January 29, the regulator kept the benchmark rate unchanged.

At present, the ECB's key interest rate is at 4.5%, the marginal lending facility interest rate stays at 4.75%, and the deposit facility rate is at 4%.

The ECB’s decision met forecasts. According to the survey conducted by Reuters, 85 respondents had expected zero changes. After the meeting held on January 25, analysts foresaw that the interest rates would remain the same. Their predictions turned out to be correct.

Notably, the European regulator is still striving to return inflation to the target of 2%. Recent reports unveiled that annual inflation had accelerated considerably. In November 2023, it totaled 2.4%, whereas in December, it stayed at 2.9%.