ECB Governing Council expected to leave rates unchanged

October 27, 2023

The Governing Council of the European Central Bank (ECB) meets in Athens today where it’s widely expected to leave interest rates on hold for the first time since last summer.

Recent economic indicators have shown the euro area is slowing down.

The ECB has raised interest rates ten times since July of last year in an effort to bring inflation under control.

Its base deposit rate is currently 4%. Many economists believe rates will stay at this level well into next year.

Last month saw inflation in the euro area slip back further to 4.3%.

Inflation in Ireland went up slightly in September.

However, inflation remains a long way from its target rate of 2%.

Meanwhile, higher rates have slowed the pace of economic activity.

Lending across the euro area is down and the euro area’s biggest economy, Germany, is in recession.

Despite all this, employment levels across the euro area remain high.

The ECB’s decision will be announced at lunchtime.

Article Source: ECB Governing Council expected to leave rates unchanged – Robert Shortt – RTE

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