作为背景，这也是欧洲央行今年第三次降息。今年6月启动本轮降息周期后，欧洲央行隔了一次会议，又在9月进行了一次“非对称降息”——存款便利利率下调25个基点，主要再融资利率和边际贷款利率下降了60个基点。①The European Central Bank delivered the third interest rate cut on schedule this year, marking the first consecutive interest rate cut in nearly thirteen years; ②Policy makers stated that recent unexpected declines in economic activity indicators have impacted inflation prospects; ③The market widely expects the European Central Bank to embark on a path of continuous interest rate cuts.
China Economic Net news on October 17th (Editor Shi Zhengcheng) At 20:15 Beijing time on Thursday night, the European Central Bank announced its latest interest rate decision: to further cut three key interest rates by 25 basis points. This is the first time since December 2011 that the European Central Bank has implemented consecutive interest rate cuts.
After adjustments, the latest European Central Bank deposit facility rate is 3.25%, the main refinancing rate is 3.4%, and the marginal lending rate is reduced to 3.65%, effective from October 23rd.
As background, this is also the European Central Bank's third interest rate cut this year. After initiating this round of interest rate cuts in June, the European Central Bank held one meeting and then conducted a "asymmetric interest rate cut" in September - the deposit facility rate was lowered by 25 basis points, the main refinancing rate and the marginal lending rate decreased by 60 basis points.
Policy makers initially anticipated no need for a rate cut in October, but subsequent economic data forced them to change their minds.
In the decision on Thursday, the European Central Bank stated that this rate cut, especially the decrease in the deposit facility rate, was based on its latest assessment of inflation prospects, potential inflation dynamics, and the intensity of monetary policy transmission. The latest information shows that the decline in inflation is progressing smoothly. Recent unexpected downside in economic activity indicators also affected the inflation outlook. At the same time, financing conditions remain relatively tight.
Earlier on Thursday, Eurostat reported that the annual euro area CPI for September was revised down from 1.8% to 1.7%. This also marks the first time euro area inflation has fallen below 2% since 2021, paving the way for the European Central Bank to continue lowering interest rates.
Regarding the future policy path, the European Central Bank did not provide many clues, the statement continues to emphasize that interest rates will be decided based on economic data received at each meeting. To some extent, this also means that policy makers lack certainty about the severity of the current economic issues.
Currently, the market further expects the European Central Bank to cut rates by another 25 basis points at the December meeting. However, there are significant differences in expectations for the policy direction in 2025, with some investors anticipating that policy rates may fall below 2% in the second half of next year, but some economists also suggest that if wages and core inflation do not weaken further, this number is more likely to be 2.5%.
According to the schedule, European Central Bank President Lagarde will hold a press conference in Slovenia later.
Editor/ping
