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Frankfurt (Reuters) – The European Central Bank has reduced interest rates as expected on Thursday and kept more dilution on the table, holding on his opinion that inflation in the euro area is increasingly controlling despite concerns about global trade.
The prices of the fifth European Central Bank have reduced the fifth of June, which has been sent well to the market, from the average the central bank on deposits to 2.75 % of 3.0 %.
The eurozone economy has remained weak, despite some signs of revival in the last round of investigative studies, and inflation may hover over the goal of the European Central Bank by 2 %, which enhances the issue to reduce the average rate of Thursday.
“The inflation process on the right track,” said the European Central Bank.
“Local inflation is still high, mostly because wages and prices in some sectors are still adapting to increased inflation in the past with great delay,” added the European Central Bank. “But the growth of wages depends as expected, and profits partially enhance the effect on inflation.”
The European Central Bank’s policymakers are likely to breathe a sigh of relief at their meeting after US President Donald Trump’s new administration has not imposed a comprehensive trade tariff as he was afraid, although the threats he made had cast a look.
Definitions tend to decrease in economic growth, and if there is revenge, then the inflation will be raised, which will put a question mark on the European Central Bank alleviating plans.
European Central Bank President Christine Lagarde holds its regular press conference at 1345 GMT. Investors are likely to listen to any comments on trade and the inflation of the high services sector and volatile financial markets.
With Thursday’s decision, the European Central Bank also reduced the rate from which banks can borrow for a week – to 2.90 % of 3.15 % – and for a day, to 3.15 % of 3.40 %.
(By reporting Francesco Kaiba; edited by Catherine Evans)
