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MNI BRIEF:  ECB Leaves Rates Unchanged, Remains Data Dependent

(MNI) London

The European Central Bank left policy rates on hold Thursday, repeating that the Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of monetary restriction. (See MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)

The statement again noted that allthough "most measures of underlying inflation have eased further, domestic price pressures remain high", in part due to growth in wages. Financing conditions are restrictive and the "past interest rate increases continue to weigh on demand, which is helping push down inflation.”

Updated Eurosystem projections show inflation at 2.3% in 2024, 2.0% in 2025 and 1.9% in 2026. Growth is seen at 0.6% this year, before accelerating to 1.5% and 1.6% in 2025 and 2026.

Bundesbank President Joachim Nagel will likely discuss the ECB's latest projections at an MNI even later this month.(See MNI Webcast with Bundesbank's Joachim Nagel On Mar 22)

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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