- Prior decision
- Deposit facility rate 2.75% vs 2.75% expected
- Prior 3.00%
- Main refinancing rate 2.90% vs 2.90% expected
- Prior 3.15%
- Marginal lending facility 3.15%
- Prior 3.40%
- The disinflation process is well on track
- Inflation has continued to develop broadly in line with staff projections
- Inflation is set to return to 2% target in the course of this year
- Recent rate cuts are gradually making new borrowing less expensive for firms and households
- The economy is still facing headwinds
- But rising real incomes, fading effects of restrictive policy should support a pick-up in demand over time
- To follow a data-dependent, meeting-by-meeting approach in determining appropriate policy stance
- ECB is still not pre-committing to a particular rate path
- Full statement
The decision and statement are in line with market expectations as it is all pretty much a repeat of the December decision. With markets also anticipating another rate cut in March, the language fits with that as the ECB reaffirms that they are still on a data- dependent approach.
The euro is barely moved from the decision with EUR/USD seen at 1.0408 currently, down 0.1% on the day.
It's on to Lagarde's press conference next. And if she plays her cards right, there won't be too much to scrutinise from all of this today.
