The European Central Bank on Thursday as anticipated saved rates of interest regular, with the deposit fee staying at 4%.
The final studying of eurozone manufacturing PMI was 43, on a scale the place readings beneath 50 point out deteriorating situations, whereas shopper sentiment is also in adverse territory. Inflation in the meantime has slowed to 4.3% year-over-year in September, from 5.2% in August.
“Inflation is still expected to stay too high for too long, and domestic price pressures remain strong. At the same time, inflation dropped markedly in September, including due to strong base effects, and most measures of underlying inflation have continued to ease,” the ECB stated.
The ECB stated its previous fee hikes are being transmitted “forcefully” into financing situations, which is dampening demand and pushing down inflation.
“Based on its current assessment, the Governing Council considers that the key ECB interest rates are at levels that, maintained for a sufficiently long duration, will make a substantial contribution to this goal. 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 ECB stated.
Source web site: www.marketwatch.com
