Central Banks
ECB Holds Rates With Inflation Sinking But Hastens Bond Exit
- Deposit rate kept at record 4% for second meeting, as expected
- PEPP reinvestments to be phased out, 2025 inflation seen 2.1%
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The European Central Bank kept interest rates on hold for a second meeting with inflation tumbling, but said it will step up its exit from €1.7 trillion ($1.8 trillion) of pandemic-era stimulus.
The deposit rate was left at a record 4% — as predicted by all 59 economists in a Bloomberg survey — with the ECB reiterating that this level will make a “substantial contribution” to returning consumer-price growth to its 2% goal.