The European Central Bank warned the euro zone economy “anti -wind” because it reduced 2.75 %

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European Central Bank warned that the economic “anti -wind” of the euro zone's stagnation because it reduced the benchmark interest rate by a quarter to 2.75 %.

The unanimous decision on Thursday increased the deposit ratio of the European Central Bank to the lowest level since 2023. This was a report at the European Statistical Bureau that the euro zone economy did not grow at all in the fourth quarter of 2024.

The European Central Bank President Christine Lagarde warned that the economy “will maintain weakness in the short term” and add that even if the service increases, the investigation also pointed out the continuous contraction of the manufacturing industry. She said: “Consumers' confidence is fragile.”

She believes that economic risks are “tendency to be unfavorable” because the greater friction of global trade may affect the euro area economy, and lower confidence may hinder investment and consumption.

The European Central Bank insisted in a statement accompanied by the decision that from 10.6 % from 10.6 % in 2022 to 10.6 % to 2.4 % in December. against the wind”.

The central bank added that “monetary policy is still restricted” -A recognizing interest rates is still higher than neutral interest rates that are neither stimulated nor preventing the economy.

The euro strengthened the euro after the expected reduction situation, and the exchange rate against the US dollar rose by 0.2 %.

Since last summer, the European Central Bank has now reduced five times and traded immediately after the decision. By the end of this year, the pricing of the drop market has been reduced by two to three quarters. Change.

“Our view is that economic data will continue to promote the European Central Bank to reduce at each meeting until the deposit rate reaches 1.5 %,” said Tomasz Wieladek, the chief economist of asset manager T Rowe Price.

He listed the threat of the US President Donald Trump's tariff plan to the economic growth of the euro zone, and expects the inflation rate to decline later this year.

Lagald said the European Central Bank's council did not have any discussions on the meeting on Thursday's meeting on Thursday.

She said: “We know the direction of travel, this is the direction we have to take.” He added that the sequence of further cutting, speed and size will be determined by data.

The Central Bank predicts that from 0.7 % of the overall overall last year to 1.1 % this year's growth will only accelerate.

The European Central Bank reiterated on Thursday that “the gradually disappearing impact of restricted monetary policy should support the collection of demand over time”, which shows that the actual income increases and reduces the cost of borrowing.

Contrary to the progress of the euro zone, the US economy grew at a rate of 2.8 % in the third quarter of last year.

The European Central Bank's decision also happened one day after the US Federal Reserve's shelving interest rate.

Investors are expected to reduce its interest rates than the euro weakened this year, which is close to the US dollar.

Dekabank chief economist Ulrich Kater told customers: “The current problem is not whether the European Central Bank will continue to reduce interest rates this year, but to reduce interest rates.”

In the transition from the previous eagle language, in December, the European Central Bank (ECB) promised that “it is necessary to maintain a long time for policy taxes” so that inflation meets its 2 % goal.