Annual 4.5% Maintained for 3 Consecutive Times
Korea-Eurozone Interest Rate Gap Remains at 1%P
The European Central Bank (ECB) kept its key policy rates unchanged on the 25th (local time).
At the monetary policy meeting on the day, the ECB announced that the key interest rate was held steady at 4.50% per annum, while the deposit rate and marginal lending rate were maintained at 4.00% and 4.75% per annum, respectively.
The ECB raised rates ten consecutive times from July 2022 until September last year, then kept rates unchanged for three consecutive meetings starting in October last year.
Accordingly, the interest rate gap between South Korea (key rate 3.50%) and the Eurozone (20 countries using the euro) remained at 1.00 percentage point.
The ECB maintained a cautious stance regarding market expectations for an early rate cut.
Christine Lagarde, President of the ECB, said at a press conference, "There was consensus at this meeting that it is premature to discuss a rate cut."
President Lagarde also forecasted, "With the energy shock, supply chain bottlenecks, and the effects of post-pandemic reopening diminishing, and monetary tightening weighing on the economy, inflation is expected to slow further this year."
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