ECB holds key rates unchanged in January

The European Central Bank (ECB) announced on Thursday that it has decided to maintain key interest rates unchanged following its January policy meeting. The interest rate on the main refinancing operations will stay at 4.50%, the interest rate on the marginal lending facility at 4.75%, and the deposit facility rate at 4.00%.

The ECB’s decision reflects its assessment of the current economic conditions, stating, “Aside from an energy-related upward base effect on headline inflation, the declining trend in underlying inflation has continued, and past interest rate increases keep being transmitted forcefully into financing conditions.”

The central bank believes that, based on the current assessment, interest rates are at levels that, if maintained for a sufficiently long duration, will make a substantial contribution to achieving its goals. This decision reflects the ECB’s ongoing efforts to navigate economic challenges and maintain stability in the Eurozone.