ECB left monetary policy unchanged as widely expected. Main refinancing, marginal lending and deposit rates are held at 4.50%, 4.75%, and 4.00% respectively.
In the accompanying statement, ECB noted that incoming information has “broadly confirmed its previous assessment of the medium-term inflation outlook. “Aside from an energy-related upward base effect”, the declining trend in underlying inflation “has continued.
The central bank also maintained that current interest rates, “maintained for a sufficiently long duration”, will make substantial contribution to bringing down inflation to target. Future policy decisions will follow a “data-dependent approach” to determine both the level of duration of monetary restriction.
