As expected, the European Central Bank cut its key interest rates by 25 basis points, bringing the deposit facility rate to 2.25%. This level of rates was described as \u201csignificantly less restrictive,\u201d leaving open the possibility that policy may now be in neutral territory.<\/p>\n
According to Christine Lagarde, the decision was unanimous and a 50-basis-point cut was not even considered as a possible course of action.<\/p>\n
From a regional economic perspective, Lagarde noted that the central bank expects the economy to post slight growth in the first quarter of the year, and that most inflation indicators point to a convergence towards the 2%\u00a0target\u00a0<\/span>over the medium to long term. However, the ECB President stressed that risks to both growth and inflation have increased significantly since U.S. President Donald Trump announced the imposition of import tariffs on all countries. According to Lagarde, the full impact of these tariffs is still unclear (and will not be clear by the June meeting either). As such, the central bank\u2019s \u201cdata-dependent\u201d approach will continue to be (now more than ever) the most appropriate one.<\/p>\n Following a meeting with no major surprises, and with uncertainty continuing to dominate the economic, financial and political landscape, investors are now pricing in at least a further 50 basis points of interest rate cuts by the end of the year.<\/p>\n This communication was produced by Banco Finantia for information purposes only and does not constitute an investment recommendation. In preparing this communication, no investment objectives, financial situations, or specific needs of investors were considered. Accordingly, the information was not tailored to any actual or potential investor, nor were any specific circumstances of such investors taken into account.<\/small><\/p>\n The information disclosed is based on market conditions prevailing at the time, as well as on information obtained from recognised third-party entities, which are public sources. Banco Finantia has not independently verified the data or information provided by those entities. As the recipient of this communication is aware of this situation, Banco Finantia cannot, under any circumstances, be held liable for any errors, omissions, or inaccuracies contained in this document or arising from the use of such information. Banco Finantia accepts no responsibility for any direct or indirect losses or damages that may be incurred by those who carry out transactions based on the information provided.<\/small><\/p>\n Banco Finantia\u2019s investment policy, whether acting on its own account or on behalf of its clients, is entirely independent of the content of this communication. The Banco Finantia Group may hold positions in, or trade, the securities or financial instruments referred to herein, before or after the issuance of this communication, and may also provide, or seek to provide, banking services to the issuers of such securities or financial instruments.<\/small><\/p>\n Banco Finantia\u2019s competent supervisory authority is the CMVM, with which it is registered under number 109.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":" As expected, the European Central Bank cut its key interest rates by 25 basis points, bringing the deposit facility rate to 2.25%. This level of rates was described as \u201csignificantly less restrictive,\u201d leaving open the possibility that policy may now be in neutral territory. According to Christine Lagarde, the decision was unanimous and a 50-basis-point […]<\/p>\n","protected":false},"author":10,"featured_media":6844,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[93],"tags":[100,102],"class_list":["post-9871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-corporate-banking","tag-ecb"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/posts\/9871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/comments?post=9871"}],"version-history":[{"count":1,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/posts\/9871\/revisions"}],"predecessor-version":[{"id":10165,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/posts\/9871\/revisions\/10165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/media\/6844"}],"wp:attachment":[{"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/media?parent=9871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/categories?post=9871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finantia.es\/en\/wp-json\/wp\/v2\/tags?post=9871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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