It is generally expected that the euro currency authorities will leave the key interest rates in the euro area unchanged for the time being. The decision will be announced in the afternoon (2:15 p.m.), and the ECB President will speak half an hour later Christine Lagarde.
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The key interest rate at which banks in the euro area can obtain fresh money from the ECB is currently 4.5 percent. If financial institutions park deposits at the central bank, they receive 4.0 percent interest.
In order to get inflation under control, which has temporarily risen to record levels, the ECB has raised interest rates ten times in a row since July 2022. Because loans become more expensive, this can slow down demand and counteract high inflation rates. However, more expensive financing is also a burden for companies and private investors. In view of the weakening economy and falling inflation, there are increasing calls to lower interest rates again.
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FRANKFURT (dpa-AFX)
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