Summary of the Monetary policy decisions by the Governing Council of European Central Bank on 14th December 2023.
Governing Council decided to keep the 3 key ECB interest rates: main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 4.50%, 4.75% and 4.00% respectively.
- Members expect headline inflation to average 5.4% in 2023, 2.7% in 2024, 2.1% in 2025 and 1.9% in 2026.
- Inflation excluding energy and food to average 5.0% in 2023, 2.7% in 2024, 2.3% in 2025 and 2.1% in 2026.
- Growth improvin from an average of 0.6% for 2023 to 0.8% for 2024, and to 1.5% for both 2025 and 2026.
- Will continue to follow a data-dependent approach, instead being time-dependent.
- To discontinue reinvestments under the pandemic emergency purchase programme (PEPP) at the end of 2024.
- Strongly committed to returning inflation to its 2% medium-term target in a timely manner.
ECB Governing Council Press Conference – 14 Dec 2023
ECB’s interest rates history from January 2000 to December 2023
The decision was an expected and so the major European stock indices did not move much.
References
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