MNI BRIEF: ECB Cuts 25BP, Policy Meaningfully Less Restrictive
MNI (LONDON) - The European Central Bank cuts its benchmark deposit rate by 25 basis points to 2.50% on Thursday, but stated policy is becoming "meaningfully less restrictive." (See MNI SOURCES: ECB Likely To Tweak Language, Keep "Restrictive" )
In a statement , the ECB also said the rates on the refinancing rate and the marginal lending rate had also been cut by 25bp.
There was an upward revision in the projection for headline inflation for 2025, "reflecting stronger energy price dynamics. Staff now see "headline inflation averaging 2.3% in 2025, 1.9% in 2026 and 2.0% in 2027, and excluding energy and food, staff project an average of 2.2% in 2025, 2.0% in 2026 and 1.9% in 2027." (see MNI SOURCES: ECB To Revise 2025 Inflation Slightly Higher )
The Governing Council repeated its mantra that policymaking would remain data-dependent, decided meeting-by-meeting and there was no set path for the policy rate.