$EUINTR -Europe Interest Rates ECONOMICS:EUINTR (October/2024)
source: European Central Bank
- The ECB lowered its three key interest rates by 25 bps in October 2024, as expected, following similar moves in September and June.
The deposit facility, main refinancing operations, and marginal lending facility rates will now be 3.25%, 3.40%, and 3.65%, respectively.
This decision stems from an updated assessment of inflation, which shows disinflation progressing well.
In September, inflation in the Eurozone fell below the ECB’s target of 2% for the first time in more than three years.
While inflation is expected to rise in the short term, it should decline toward the 2% target in 2025.
Wage growth remains high, but pressures are easing.
The ECB remains committed to restrictive rates to ensure inflation reaches its medium-term goal, using a data-driven, flexible approach without committing to a specific rate path.
