At the debut of the new governor of the Bank of Portugal, Álvaro Santos Pereira, in a meeting, the European Central Bank (ECB) kept the interest rate on deposits unchanged at 2% for the third consecutive meeting, as was already being anticipated by the market.
“Inflation remains close to the 2% objective in the medium term and the Council’s assessment of the price outlook remains largely unchanged”, the statement read. Christine Lagarde, president of the ECB, will give a press conference at 1:45 p.m.Lisbon time.
In September, atThe euro zone’s annual inflation rate rose to 2.2%compared to 2% in August, the highest value in the last five months, driven by the services and energy sectors. It put an end to a cycle of three consecutive months at 2%.
According to the ECB’s latest macroeconomic forecasts, the global inflation rate will be 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027.
“The economy continued to grow, despite the challenging global environment. The robust labor market, solid private sector balance sheets and already implemented interest rate cuts continue to be important sources of resilience. Still, the panorama remains uncertainin particular due to global trade disputes and geopolitical tensions”, adds the ECB.
A eurozone economy grew 0.2% quarterly in the third quarter and 1.3% year-on-year.
After cutting interest rates eight times in a row, for a total of 200 basis points, Lagarde has now been on pause since July.
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