The deposit rate is reduced to 3.75%. But for Christine Lagarde, the fight to control inflation, on the right track, is not over.
Special correspondent in Frankfurt
The European Central Bank (ECB) reduced its key rates by a quarter of a point, as expected for weeks. The decision of the Governing Council, meeting Thursday in Frankfurt, taken almost unanimously by its twenty-six members, with just one vote, brings a little oxygen to the European economy which has been strangled by high rates for months. The drop from 4% to 3.75% in the deposit rate is not, however, the start of a regular loosening of the grip hoped for by economic players: borrowing households, investing companies or States. in debt.
“ We do not commit in advance to a particular rate trajectory », showered Christine Lagarde, president of the ECB, during a press conference. He had to perform a balancing act to justify this first rate cut in five years, after ten consecutive increases, even as the ECB’s economists are reviewing their inflation projections…
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