The Governing Council of the European Central Bank (ECB) has opted to keep interest rates unchanged. In this way, the deposit rate (DFR) continues at 2.5%, that of the main refinancing operations (MRO) stands at 2.65% and the marginal lending facility (MLF) remains at 2.90%, in a pause in monetary policy that leaves the door open to future hikes.
The body based in Frankfurt has decided to halt, for now, the adjustment of the price of money after the increases applied in June and, later, in September, in a scenario in which inflation has rebounded to 3.8%, a level not recorded since three years ago.
"Energy prices have continued to rise, which poses upward risks to the inflation outlook and downward risks to the growth outlook. Although the effects of the energy shock have not yet fully materialized, underlying inflation has generally remained stable so far and wages do not show a substantive response at this stage", the institution has highlighted.
The monetary policy meeting this Thursday has also been conditioned by the announcement of the early departure of Christine Lagarde from the ECB, a decision that adds uncertainty to the central bank's future course.
((WILL BE EXPANDED))