ECB under pressure: Inflation breaks - is interest reductions imminent?

ECB under pressure: Inflation breaks - is interest reductions imminent?

Luxemburg, Luxemburg - Inflation in the euro area has fallen to a record low! In September, the prices for goods and services only increased by an average of 1.7 percent compared to the previous year, as the final figures from Eurostat show. This has been the lowest value since April 2021 and undercut the target brand of two percent, which is sought by the European Central Bank (ECB). In August the rate was still 2.2 percent.

With this dramatic reduction in inflation, the capital markets await an interest rate reduction by the ECB. Analysts firmly expect the ECB to reduce its interest again today after the deposit rate has already been reduced to 3.50 percent in mid -September. The background to the positive development is the decline in energy prices by 6.1 percent of the year. In contrast, prices for services rose by 3.9 percent. These developments underline the pressure on the ECB of adapting the monetary policy measures to cope with the economic challenges in the euro zone. More details in a current report by www.lippewelle.de .