Frankfurt: The European Central Bank held its deposit facility rate at 2% on Thursday for the third consecutive meeting. In a statement, the ECB expressed that the Governing Council decided to keep the three key ECB interest rates unchanged, noting that inflation remains close to the 2% medium-term target and the outlook is broadly unchanged. Despite a challenging global environment, the economy has continued to grow, supported by a robust labour market and solid private sector balance sheets.
According to Emirates News Agency, the Governing Council emphasized its determination to ensure inflation stabilizes at its 2% target in the medium term. It plans to follow a data-dependent and meeting-by-meeting approach to determine the appropriate monetary policy stance. The interest rate decisions will hinge on an assessment of the inflation outlook and accompanying risks, considering incoming economic and financial data, underlying inflation dynamics, and the strength of monetary policy transmission. The Governing Council is not committed to a particular rate path at this time.