The direction for further loosening MMF policy is very clear, according to theECB Governing Council.
A member of the European Central Bank governing council and the president of the French central bank, Francois Villeroy de Galhau, stated that the direction for the European Central Bank to further loosen MMF policy is "clear."
Lagarde: It is too early to discuss where to stop interest rate cuts, facing significant and ever-rising uncertainty.
European Central Bank President Lagarde stated that the decision to cut interest rates was unanimously approved, and there was no discussion about the terminal rate. The next steps will be determined by subsequent data, and global trade friction has created uncertainty in the inflation outlook. The European economy is expected to remain weak in the short term, but also warned that inflation risks are tilted upwards, and a significant rate cut of 50 basis points is "not under discussion at all."
Weak growth outweighs inflation concerns, the European Central Bank has cut interest rates for the fifth time. What comes next?
① The European Central Bank announced a decrease of 25 basis points in its three major key interest rates, marking the fifth rate cut since June of last year; ② The European Central Bank stated that inflation continues to evolve roughly as predicted, expecting to return to the mid-term target of 2% within the year; ③ The European Central Bank indicated that the economy is facing headwinds, suggesting that further loosening of policy may occur in the future.
The European Central Bank has lowered interest rates by 25 basis points as expected, and traders anticipate a further 70 basis points cut this year.
The European Central Bank has lowered interest rates to 2.75%, marking the fifth rate cut since the easing cycle began in June 2024. The committee stated it is ready to adjust all tools at any time, and the current MMF policy remains restrictive, interpreted as a hint that further rate cuts may follow. The euro and European bond yields continue to decline, while the pan-European stock index remains on the rise. The market is focused on how Lagarde will address the rising Energy prices and the uncertainties surrounding Trump's tariffs during the press conference.
The European Central Bank cut interest rates by 25 basis points, why hasn't the Euro Exchange Rates fluctuated significantly?
On Thursday (January 30), the European Central Bank announced a reduction of its three key interest rates by 25 basis points, as expected by the market. This decision marks the fifth interest rate cut since June 2024. The main objective of this rate decrease is to promote the recovery of the eurozone economy and accelerate the decline of inflation back to the 2% target through further easing of MMF policy. The European Central Bank pointed out in its statement that despite facing pressure from economic slowdown, the process of inflation decline has been gradually stabilizing, and various core MMF Indicators have also shown a downward trend. This rate cut is regarded as a market response and analysis after the European Central Bank lowered rates by 25 basis points during its MMF policy normalization.
The Hong Kong Monetary Authority: Hong Kong interest rates may remain at a relatively high level for the foreseeable future.
Under the linked exchange rate system, Hong Kong dollar interbank rates generally approach the US dollar interest rates, while shorter-term interbank rates are simultaneously influenced by local market supply and demand for Hong Kong dollar funds. Hong Kong interest rates are likely to remain at a relatively high level for the foreseeable future.