With medium-term inflation projections for the euro area anchored at 2.0%, the ECB’s Governing Council is of the opinion that the euro area has overcome the inflationary shock caused by Russia’s military aggression launched against Ukraine in February 2022. On Thursday 24 July, it therefore decided to leave its three key interest rates unchanged for the first time after eight meetings which resulted in rate cuts (see EUROPE B13654A19).
“The Governing Council today decided to keep the...