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August 15, 2022

ECB keeps interest rates on hold at 0.25 pc

The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25 percent, BBC informs. It comes despite the fact that inflation in the currency bloc fell to a five year low in March. Eurozone interest rates have remained unchanged since November 2013, when the bank said it expected “a prolonged period of low inflation”. This week figures showed inflation continued to fall in March to 0.5 percent, well below the ECB’s target of 2 percent. Policymakers have been willing in recent weeks to publicly broach cutting deposit rates below zero – effectively charging banks to hold cash with the ECB – or embarking on bond purchases as the United States, Japan and Britain have, if the threat of deflation became more acute.

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