1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

ECB holds interest rate at record high 4.5%

April 11, 2024

Europe's central bank has left its key interest rate unchanged. The decision, which was widely expected, comes even as inflation continues to fall faster than expected.

Euro banknotes
The European Central Bank is keeping a close eye on falling inflationImage: Monika Skolimowska/dpa/picture alliance

The European Central Bank held interest rates at a record high but signaled Thursday it could cut interest rates at its next meeting in June.

The announcement is the fifth consecutive pause since October and was widely expected.

The interest rate on the main refinancing operations will remain unchanged at 4.50%. The interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4.75% and 4.00% respectively.

The bank's rate-setting council said it would wait for confirmation that rapidly receding inflation is firmly under control before deciding to cut interest rates.

"Most measures of underlying inflation are easing... but domestic price pressures are strong and are keeping services price inflation high," it said.

ECB analysts will present new economic and inflation forecasts in June.

European Central Bank eyeing inflation

Major central banks including the ECB an the US Federal Reserve are weighing when receding inflation will let them cut rates.

Eurozone inflation slowed more than expected in March to 2.% — not far off the ECB's target of 2%.

In its statement on Thursday, the ECB said that "past interest rate increases continue to weigh on demand, which is helping to push down inflation."

It added that once its confident that inflation has reached target levels, "it would be appropriate to reduce the current level of monetary policy restriction."

European economy shows staying power in face of crises

zc/wmr (AFP, Reuters, dpa, AP)