Monetary policy decisions
30 January 2025

The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

The disinflation process is well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to the Governing Council’s 2% medium-term target in the course of this year. Most measures of underlying inflation suggest that inflation will settle at around the target on a sustained basis. Domestic inflation remains high, mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. But wage growth is moderating as expected, and profits are partially buffering the impact on inflation.

weiter:

https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.mp250130~530b29e622.en.html

That took their deposit rate down to 2.75%, meaning that they’ve now cut by a total of 125bps since they began last June.

Looking forward, it was clear that further cuts were on the agenda, as the statement still described monetary policy as “restrictive”, and President Lagarde said “we are not at the neutral rate”.

However, Lagarde didn’t want to signal how long they’d keep cutting for, saying that “it would be premature at this point in time to talk about the point where we have to stop”.

>That took their deposit rate down to 2.75%, meaning that
>they’ve now cut by a total of 125bps since they began last
>June.
>
>Looking forward, it was clear that further cuts were on the
>agenda, as the statement still described monetary policy as
>“restrictive”, and President Lagarde said “we are not at the
>neutral rate”.
>
>However, Lagarde didn’t want to signal how long they’d keep
>cutting for, saying that “it would be premature at this point
>in time to talk about the point where we have to stop”.

so restrictive dass der dax jeden tag ein neues ATH macht und fartcoin auf 10mrd bewertung ist... gleich dilusional wie die fed.

>>That took their deposit rate down to 2.75%, meaning that
>>they’ve now cut by a total of 125bps since they began
>last
>>June.
>>
>>Looking forward, it was clear that further cuts were on
>the
>>agenda, as the statement still described monetary policy
>as
>>“restrictive”, and President Lagarde said “we are not at
>the
>>neutral rate”.
>>
>>However, Lagarde didn’t want to signal how long they’d
>keep
>>cutting for, saying that “it would be premature at this
>point
>>in time to talk about the point where we have to stop”.
>
>so restrictive dass der dax jeden tag ein neues ATH macht und
>fartcoin auf 10mrd bewertung ist... gleich dilusional wie die
>fed.


Am Papier halt: 2,75% bei 2% Inflationsziel = positiver Realzins