The ECB reduces interest rates and remains more relaxing at the table

The European Central Bank reduced interest rates as expected on Thursday and kept more relieved on the table, sticking to its opinion that inflation in the euro zone is increasingly under control despite concerns about global trade.

The fifth reduction of the ECB rate since June, which had telegraphed well to the market, reduced the rate that the Central Bank pays in deposits to 2.75% from 3.0%.

The economy of the euro zone has remained weak, despite some signs of rebirth in the last round of surveys, and inflation has been around the objective of 2% of the ECB, consolidating the case for the cut of tariffs of the tariffs of the Thursday.

“The disinflation process is fine on its way,” said the ECB.
“Internal inflation remains high, mainly because salaries and prices in certain sectors are still adjusted to the increase in past inflation with a substantial delay,” added the ECB. “But salary growth is moderating as expected, and profits are partially cushioning the impact on inflation.”

It is likely that the policy formulators of the ECB breathe a sigh of relief in their meeting after the new administration of the president of the United States, Donald Trump, did not impose general commercial tariffs as feared, although the threats he made have thrown a Shadow on perspectives.

Tariffs tend to depress economic growth and if there are reprisals, inflation increases, which would put an interrogation sign on ECB flexion plans.

The president of the ECB, Christine Lagarde, celebrates her regular press conference in 1345 GMT. Investors are likely to listen to any comments on trade, inflation in the high -services sector and volatile financial markets.

With Thursday's decision, the ECB also reduced the rate at which banks can borrow for a week, 2.90% of 3.15%, and for one day, to 3.15% of 3.40%.