'Not committed to any particular rate path' (Il Sole 24 Ore Radiocor) - Frankfurt , 06 Jun - The European Central Bank said the Governing Council today decided to lower the three key ECB interest rates by 25 basis points, explaining that it "is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady." Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be decreased to 4.25%, 4.50% and 3.75% respectively, with effect from June 12, 2024.

The central bank stressed, however, that domestic price pressures remain strong, as wage growth is elevated and inflation is likely to stay above its 2% target well into 2025.

"The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner," the ECB said in a statement. "It will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim. The Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction. In particular, its interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission.

The Governing Council is not pre-committing to a particular rate path.".

AAA-Hob

(RADIOCOR) 06-06-24 14:25:41 (0407) 5 NNNN