At its meeting on 25 January 2024, the Governing Council decided to keep the three key ECB interest rates unchanged. The incoming information broadly confirmed its previous assessment of the medium-term inflation outlook. Aside from an energyrelated upward base effect on headline inflation, the declining trend in underlying inflation has continued, and the past interest rate increases keep being transmitted forcefully into financing conditions. Tight financing conditions are dampening demand, and this is helping to push down inflation. The Governing Council is determined to ensure that inflation returns to its 2% ... (full story)

“The Governing Council’s future decisions will ensure that its policy rates will be set at sufficiently restrictive levels for as long as necessary,” the European Central Bank’s (ECB) Economic Bulletin showed on Thursday. Additional takeaways • The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction. • The incoming information broadly confirmed its previous assessment of the medium-term inflation outlook. • The euro area economy is likely to have stagnated in the final quarter of 2023. Market reaction The Euro seems to have ignored the ... (full story)