The European central bank (ECB) kept key interest rates unchanged at its last meeting, and it seems, as if the central bank was playing for time, when it comes to the first interest rate cut. After an unexciting session, analysts are left with the same impression, that the ECB will exercise patience. Investors must therefore continue to be prepared for a test of patience.
Interest rates in the euro area remain at a high level, as the ECB has left key interest rates unchanged for the third time in a row, as expected. The key interest rate therefore remains at 4,5 percent, while the deposit interest rate for excess liquidity of the banks 4,0 percent is. It is expected, that key interest rates will remain at their current high for a while. Interestingly, the Dax still rose by more than 100 points from his daily low.
After the meeting, ECB President Lagarde reported, that there is broad agreement on this in the ECB Council, that it “is premature, to talk about interest rate cuts”. The central bank will continue to strictly follow new data, and there are no fixed dates in the calendar for interest rate changes.
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