Inflation sustainably around target backs further ECB cuts
In Short
ECB cut by 25 bps today: At today’s meeting the GC again decided to cut its key rate, the deposit rate, to 3.0%. It continues with APP non-reinvestments and announced to fully stop these reinvestments at the end of 2024. Inflation to stay around target over most of the projection horizon…: At today’s meeting the ECB staff presented the updated macro projections, now extended until 2027. Most notable, headline as well as core inflation are set to stay around the 2% target from 2025 onwards with annual inflation rates of 2.1%, 1.9%, 2.1% in case of headline inflation and 2.3%, 1.9%, 1.9% for the core inflation over the years 2025 to 2027 respectively.
