European Central Bank announces interest rate decision

The European Central Bank (ECB) has kept all three of its policy rates unchanged. 

The benchmark interest rate remained steady at 4.75 percent. The deposit facility rate remained steady at 4 percent. The marginal lending facility rate also remained steady at 4.75 percent. 

In a statement released by the European Central Bank, it was noted that past interest rate hikes have begun to reflect in financing conditions. 

The assessment made by the European Central Bank is as follows;

"The Committee maintains its assessment that interest rates, if kept at sufficiently high levels for a long enough duration, will make a significant contribution to bringing inflation to its target. The Committee will ensure that its future decisions keep policy interest rates at sufficiently restrictive levels for as long as necessary. The ECB will continue to flexibly apply the reinvestment of principal payments from maturing securities in the PEPP portfolio. Principal payments from the PEPP portfolio will continue to be reinvested at least until the end of 2024."

Economists were not expecting an interest rate hike from the ECB following the stagnation of the Eurozone economy. 

According to growth data released in September, the Eurozone grew by only 0.1 percent, contrary to growth forecasts of 0.3 percent. 

With this decision, the ECB, which had raised interest rates in each of the last 10 meetings, did not go for a rate hike this time. Inflation in the Eurozone stands at 4.3 percent. Interest rates in the Eurozone remain in positive territory.