The European Central Bank on Thursday maintained interest rates on Thursday, after 8 consecutive reductions.

The basic interest rate is 2%.

The ECB wishes to have more data available to inflation and the possible impact of Trump duties before proceeding with its next move.

Markets invoice two more reductions for this year, one in September and another in December.

The ECB’s announcement

The Board of Directors today decided to maintain the three main interest rates of the ECB unchanged.

Inflation is currently formed in the medium -term target of 2%. Incoming information is generally in line with the previous evaluation of the Board of Directors for the prospects of inflation. Domestic prices have continued to recede and salaries are increasing at a slower pace.

By partly reflecting the previous interest rates by the Board of Directors, the economy has so far proven to be resistant to an adverse global environment so far. At the same time, the environment remains extremely uncertain, especially because of commercial conflicts.

The Board of Directors is determined to ensure that inflation is stabilized in the 2% goal in the medium term. It will follow an approach based on the available data and will make decisions from a meeting at a meeting to determine the appropriate direction of monetary policy.

Specifically, the decisions of the Board of Directors on interest rates will be based on its evaluation of the prospects of inflation and the dangers that surround them, in the light of incoming financial and financial data, as well as the dynamics of underlying inflation and the intensity with which monetary policy is transmitted. The Board of Directors is not committed in advance for a specific course of interest rates.

Basic interest rates of the ECB

Interest rates on the acceptance of deposits, main refinancing and marginal funding facility will remain unchanged at 2.00%, 2.15% and 2.40% respectively.

Purchase Purchase (APP) and Extraordinary Purchase Purchase Purchase Program (PEPP)

The PEPP and PEPP portfolios are reduced at a measured and predictable rate, as the Eurosystem no longer reinserts the amounts of capital from the payment of securities at the end.

The Board of Directors is ready to adapt all the means available within the limits of the mandate assigned to it to ensure that inflation is stabilized in the goal of 2% in the medium term and to preserve the smooth functioning of the monetary policy transmission mechanism.

In addition, the Transmission Protection Instrument (TPI) means is available to offset unwanted, naughty market developments that poses a serious threat to transmit monetary policy in all euro zone countries, thereby allowing the Board of Directors to fulfill its impartiality.