EZB senkt Zinsen um 0,25% auf 2,25%

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 as staff expected, with both headline and core inflation declining in March. Services inflation has also eased markedly over recent months. Most measures of underlying inflation suggest that inflation will settle at around the Governing Council’s 2% medium-term target on a sustained basis. Wage growth is moderating, and profits are partially buffering the impact of still elevated wage growth on inflation. The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions. Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions. These factors may further weigh on the economic outlook for the euro area.

The Governing Council is determined to ensure that inflation stabilises sustainably at its 2% medium-term target. Especially in current conditions of exceptional uncertainty, it will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. The Governing Council is not pre-committing to a particular rate path.

Key ECB interest rates
The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. Accordingly, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.25%, 2.40% and 2.65% respectively, with effect from 23 April 2025.

Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP)
The APP and PEPP portfolios are declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.

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The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises sustainably at its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission. Moreover, the Transmission Protection Instrument is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries, thus allowing the Governing Council to more effectively deliver on its price stability mandate.

The ECB cut rates by 25bp to 2.25%, as was universally expected. The decision was unanimous. Other options came up during the debate, including a 50bp cut, but no one appears to have formally argued for it. Nevertheless, that 50bp came up and that all those who had previously argued for a pause supported today’s cut gives the meeting a dovish tone. The policy statement also included many other dovish elements, including that the disinflation process is “well on track”, that services inflation has slowed “markedly” and that inflation is likely to settle at around the target. The statement also said clearly that growth risks were on the downside, not just because of the impact of the trade war itself and the uncertainty it creates but because the “adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions”.

Donald J. Trump

@realDonaldTrump

The ECB is expected to cut interest rates for the 7th time, and yet, “Too Late” Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!

>Donald J. Trump
>
>@realDonaldTrump
>
>The ECB is expected to cut interest rates for the 7th time,
>and yet, “Too Late” Jerome Powell of the Fed, who is always
>TOO LATE AND WRONG, yesterday issued a report which was
>another, and typical, complete “mess!”

Bei den tweets gegen Powell/die Fed muss ich immer ein wenig schmunzeln, weil da hat ja Trump sogar recht. Zinsen kann auch der Markt bestimmen(und hat man ja gesehen, als die Zinsen für 10y+ bonds weiter stiegen während die FED senkte...)