The Council of managers established the major refinancing rate at 2.15%, the deposit rate was 2%, and the margin lending rate was at 2.40%.
The European Central Bank (ECB) board has decided to reduce three major interest rates by 25 main points. In particular, the deposit rate, which is the main tool for financial policy, has been 2.00%since June 11. It was reported by the ECB press service on Thursday, June 5.
The decision emphasizes that the rate adjustment has taken place based on an updated assessment of inflationary prospects, the dynamics of the main inflation and the effectiveness of the impact of the financial policy.
We added that the Council of managers established the main rate of refinancing at 2.15%, the deposit rate was 2%, and the margin lending rate was 2.40%.
“Inflation is approaching the medium-term purpose of 2% and, according to the main scenario of the new macroeconomic forecasts of the eurosystem, will be an average of 2.0% in 2025, 1.6% of 2026 and 2.0% in 2027,” the report said.
GDP’s real growth for eurozone was 0.9% in 2025, 1.1% in 2026 and 1.3% in 2027. It is expected that growth will be supported by state investments in infrastructure and defense, as well as increasing real income and a sustainable labor market.
Reflection of the decline compared to March forecasts of 0.3% for both 2025 and 2026 usually reflect the expectations of lower energy prices and euro boost.
At the same time, the ECB emphasized that decisions will be made “from a meeting to the meeting”, depending on the economic data. Regulator tools remain flexible as needed to ensure target inflation.
The ECB rating cycle began in June 2024, when the base rate reached a high level of 4% to oppose growing inflation.
Keep in mind that consumer prices in Switzerland in May have decreased by 0.1% compared to the same month of last year.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.