ECB seen from Goetheturm Frankfurt (Roman Kessler)ECB seen from Goetheturm Frankfurt (Roman Kessler)

Frankfurt, Germany — The European Central Bank’s (ECB) executive board Thursday decided decided to keep the three key ECB interest rates unchanged.

Christine Lagarde, President of the ECB, Luis de Guindos

Although most measures of underlying inflation have eased further, domestic price pressures remain high, in part owing to strong growth in wages. Financing conditions are restrictive and our past interest rate increases continue to weigh on demand, which is helping push down inflation. Staff have revised down their growth projection for 2024 to 0.6 per cent, with economic activity expected to remain subdued in the near term. Thereafter, staff expect the economy to pick up and to grow at 1.5 per cent in 2025 and 1.6 per cent in 2026, supported initially by consumption and later also by investment.

By Silvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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