• News
  • Methodology
  • About us
Tuesday, October 3, 2023
  • Login
No Result
View All Result
NEWSLETTER
Reputation Poll
17 °c
London
19 ° Thu
18 ° Fri
14 ° Sat
13 ° Sun
  • HOME
  • Brands
    • 2017 Most Reputable Bank CEO
  • Personalities
    • 2017: 100 Most Reputable People on Earth
    • Most Reputable Bank CEOs
  • Reputation Ranking
    • 100 Most Reputable Companies in Africa
    • 100 Most Reputable Companies
    • 100 Most Reputable Brands
    • 2019 100 Most Reputable People on Earth
    • 100 Worst Customer Service Companies
    • Major Brands of the Year
  • Polls
  • Reputable Banks & Fintech Award
  • Communications
  • Energy
  • Finance
  • Aviation
  • HOME
  • Brands
    • 2017 Most Reputable Bank CEO
  • Personalities
    • 2017: 100 Most Reputable People on Earth
    • Most Reputable Bank CEOs
  • Reputation Ranking
    • 100 Most Reputable Companies in Africa
    • 100 Most Reputable Companies
    • 100 Most Reputable Brands
    • 2019 100 Most Reputable People on Earth
    • 100 Worst Customer Service Companies
    • Major Brands of the Year
  • Polls
  • Reputable Banks & Fintech Award
  • Communications
  • Energy
  • Finance
  • Aviation
No Result
View All Result
Reputation Poll
No Result
View All Result

European Central Bank Raises Interest Rates By 0.25%

While inflation has been trending lower, it continues to persist at elevated levels. The ECB's primary aim is to bring it back to the 2% target. To achieve this, the decision was made to increase three key ECB interest rates by 25 basis points.

by News Editor
September 18, 2023
in Europe, Reports
0
European Central Bank Raises Interest Rates By 0.25%
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

Monetary policy decisions

Inflation continues to decline but is still expected to remain too high for too long. The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner. In order to reinforce progress towards its target, the Governing Council today decided to raise the three key ECB interest rates by 25 basis points.

The rate increase today reflects the Governing Council’s assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission. The September ECB staff macroeconomic projections for the euro area see average inflation at 5.6% in 2023, 3.2% in 2024 and 2.1% in 2025. This is an upward revision for 2023 and 2024 and a downward revision for 2025. The upward revision for 2023 and 2024 mainly reflects a higher path for energy prices. Underlying price pressures remain high, even though most indicators have started to ease. ECB staff have slightly revised down the projected path for inflation excluding energy and food, to an average of 5.1% in 2023, 2.9% in 2024 and 2.2% in 2025. The Governing Council’s past interest rate increases continue to be transmitted forcefully. Financing conditions have tightened further and are increasingly dampening demand, which is an important factor in bringing inflation back to target. With the increasing impact of this tightening on domestic demand and the weakening international trade environment, ECB staff have lowered their economic growth projections significantly. They now expect the euro area economy to expand by 0.7% in 2023, 1.0% in 2024 and 1.5% in 2025.

Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target. The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary. The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission.

Key ECB interest rates

The Governing Council decided to raise the three key ECB interest rates by 25 basis points. Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 4.50%, 4.75% and 4.00% respectively, with effect from 20 September 2023.

Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP)

The APP portfolio is declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.

As concerns the PEPP, the Governing Council intends to reinvest the principal payments from maturing securities purchased under the programme until at least the end of 2024. In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary policy stance.

The Governing Council will continue applying flexibility in reinvesting redemptions coming due in the PEPP portfolio, with a view to countering risks to the monetary policy transmission mechanism related to the pandemic.

Refinancing operations

As banks are repaying the amounts borrowed under the targeted longer-term refinancing operations, the Governing Council will regularly assess how targeted lending operations and their ongoing repayment are contributing to its monetary policy stance.

***

The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission. Moreover, the Transmission Protection Instrument is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries, thus allowing the Governing Council to more effectively deliver on its price stability mandate.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:45 CET today.

News Editor

News Editor

Editorial Management . Corporate Communications . Media Resource Strategy . Product Positioning . Partnership Development . Digital Marketing . oludare.richards@gmail.com

Next Post
This Paris Apartment Offers a Minimalist Take on Art Deco

This Paris Apartment Offers a Minimalist Take on Art Deco

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result

Recent Post

  • Express Entry’s targeted occupations: How many agricultural, agri-food workers does Canada really need?
  • India tells Canada to withdraw 41 diplomats over Sikh murder rift: Report
  • Finding Affordable Housing In London, Students Lament
  • Mediterranean ‘becoming a cemetery for children and their futures’
  • Kenya’s Approach To Tackling Fake News: A UN Resident Coordinator blog

About Us

Reputation Poll

Reputation Poll

Reputation Poll International is a strategic consultancy agency specialised in corporate Reputation management. We help our clients achieve their objectives by communicating more effectively with their customers, investors, employees, policy-makers, regulators and the wider public.

Reputationpoll

Quick Links

  • HOME
  • Brands
    • 2017 Most Reputable Bank CEO
  • Personalities
    • 2017: 100 Most Reputable People on Earth
    • Most Reputable Bank CEOs
  • Reputation Ranking
    • 100 Most Reputable Companies in Africa
    • 100 Most Reputable Companies
    • 100 Most Reputable Brands
    • 2019 100 Most Reputable People on Earth
    • 100 Worst Customer Service Companies
    • Major Brands of the Year
  • Polls
  • Reputable Banks & Fintech Award
  • Communications
  • Energy
  • Finance
  • Aviation

Category

  • 100 Most Reputable Brands
  • 100 Most Reputable Companies
  • 100 Most Reputable Companies in Africa
  • Africa
  • Agriculture
  • AI
  • Asia
  • Aviation
  • Banking
  • Brands
  • Britain
  • Communications
  • Cuisine
  • ECOWAS
  • Education
  • Energy
  • Entertainment
  • Europe
  • Family
  • Fashion
  • Finance
  • Football
  • Front Pages
  • Health
  • Hotels
  • ICT
  • International
  • Major Brands of the Year
  • Movie Review
  • People
  • Politics
  • Polls
  • Queen
  • Religion
  • Reports
  • Reputable personality
  • Reputation Ranking
  • Royalty
  • Showbiz
  • Sports
  • Tech
  • The King
  • Tourism
  • Travel
  • UN
  • USA
  • Video

Recent Post

  • Express Entry’s targeted occupations: How many agricultural, agri-food workers does Canada really need?
  • India tells Canada to withdraw 41 diplomats over Sikh murder rift: Report
  • Finding Affordable Housing In London, Students Lament
  • Mediterranean ‘becoming a cemetery for children and their futures’
  • Kenya’s Approach To Tackling Fake News: A UN Resident Coordinator blog
  • Disclaimer
  • Terms and Condition
  • Advertisement
  • Contact Us
  • Webmail

© 2021 reputationpoll

No Result
View All Result
  • 2017 Most Reputable Bank CEO
  • 2017: 100 Most Reputable People on Earth
  • 2019 100 Most Reputable People on Earth
  • About us
  • Disclaimer
  • Home
  • main home
  • Methodology
  • Most Reputable Bank CEOs
  • News
  • Reputable Banks & Fintech Award
  • REPUTABLE BANKS & FINTECH AWARD (RBFA)
  • Reputation Poll
  • Terms and Condition for Reputation poll

© 2021 reputationpoll

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Frueh, ha riferito che rimane. Cialis Daily Cialis Daily è famosa
  • Fram med lite kliniska studier på pubmed nu grabben. Det enda
  • Watson PD, Joy PS, Nkonde C et al. Legemiddelalternativer Ingen
  • Hvordan stiller lægen diagnosen kræft i livmoderen
  • Syndrome métabolique : quel est votre tour de taille? Minéraux