Prior decisionMain refinancing rate 4.25% vs 4.25% expectedPrior 4.25%Deposit facility rate 3.75% vs 3.75% expectedPrior 3.75%Marginal lending facility 4.50%Prior 4.50%Incoming information broadly supports previous assessment of inflation outlookNot pre-committing to a particular rate pathDetermined to ensure inflation returns to 2% target in a timely mannerWill keep policy rates sufficiently restrictive for as long as necessary to return inflation back to medium-term target goalDomestic price pressures are still high, services inflation is elevated and headline inflation is likely to remain above the target well into next yearFull statement
The statement language is very much as expected as the ECB defers the decision to cut rates to September. There are no surprises in the wording and Lagarde should follow up on that similarly later. It’s as much as an “as you were” statement that the central bank could produce.
EUR/USD is little changed at 1.0930 levels currently still.
This article was written by Justin Low at www.forexlive.com.
