Reported by Consejeros Editorial Team
The Governing Council of the European Central Bank has decided to keep interest rates unchanged, meaning that the deposit facility rate (DFR) will remain at 2.25 per cent, the main refinancing operations (MRO) rate at 2.40 per cent and the marginal lending facility (MLF) rate at 2.65 per cent, following the 25-basis-point rise already implemented at the institution’s previous meeting, according to Europa Press.
“The outlook for energy prices, whilst highly volatile, is currently close to the baseline scenario of the Eurosystem staff projections from June and well above the levels recorded prior to the conflict in the Middle East. Uncertainty persists and the full inflationary impact of the energy crisis has not yet materialised,” reads the statement issued by the central bank.
The eurozone inflation rate moderated by four tenths of a percentage point in June to 2.8 per cent, compared with 3.2 per cent in May, although renewed tensions in the Middle East are increasing pressure on prices, with Brent crude hovering around the $100 mark on Thursday.
