ECB leaves key interest rates unchanged in December monetary policy meeting

<ul><li><a href="https://www.forexlive.com/centralbank/ecb-leaves-key-interest-rates-unchanged-in-october-monetary-policy-meeting-20231026/" target="_blank" rel="follow">Prior decision</a></li><li>Main refinancing rate 4.50% vs 4.50% expected</li><li>Prior 4.50%</li><li>Deposit facility rate 4.00% vs 4.00% expected</li><li>Prior 4.00%</li><li>Marginal lending facility 4.75%</li><li>Prior 4.75%</li><li>Inflation has dropped in recent months but likely to pick up against temporarily in the near-term</li><li>Past rate hikes are continuing to be transmitted forcefully to the economy</li><li>Tighter financing conditions are dampening demand, and this is helping to push down inflation</li><li>Expects economic growth to remain subdued in the near-term</li><li>Future decisions will ensure that its policy rates will be set at sufficiently restrictive levels for as long as necessary</li><li>To continue to follow a data-dependent approach to determining the appropriate level and duration of restriction</li><li>Rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data</li><li>ECB intends to discontinue reinvestments under the PEPP at the end of 2024</li><li><a href="https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.mp231214~9846e62f62.en.html" target="_blank" rel="nofollow">Full statement</a></li></ul>

This article was written by Justin Low at www.forexlive.com.