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LAST UPDATE | 14 Dec 2023
THE EUROPEAN CENTRAL Bank has announced it is keeping interest rates unchanged as it predicts inflation will pick up again temporarily in the near term.
“The Governing Council today decided to keep the three key ECB interest rates unchanged. While inflation has dropped in recent months, it is likely to pick up again temporarily in the near term,” the central bank said in a statement issued this afternoon.
The interest rates on the main refinancing operations, the marginal lending facility and the deposit facility are to remain unchanged at 4.50%, 4.75% and 4.00% respectively.
“The past interest rate increases continue to be transmitted forcefully to the economy. Tighter financing conditions are dampening demand, and this is helping to push down inflation,” the statement said.
The ECB’s Governing Council said it is “determined to ensure that inflation returns to its 2% medium-term target in a timely manner”.
“Based on its current assessment, the Governing Council considers that the key ECB interest rates are at levels that, maintained for a sufficiently long duration, will make a substantial contribution to this goal,” the statement said.
The ECB’s president Christine Lagarde is set to give a press conference on the decision shortly.
Speaking in Brussels earlier today, Taoiseach Leo Varadkar said he expects to see “interest rates fall next year”, something he said would be “very welcome for borrowers and mortgage holders in particular”.
He also noted that the Irish economy is “slowing down” and that this is “very evident”.
However, he added that the ESRI report showing that the Irish economy is continuing to grow despite a contraction in Gross Domestic Product (GDP) this year “tells a very important story”.
“In my view that confirms that the government has made the right policy decisions,” said Varadkar.
“A lot of people, six months ago or a year ago, were talking about the economy overheating. Nobody’s talking about that now.
“Very recently, some people were talking about the government fuelling inflation.
“In fact, inflation is coming down and it’s going to be between two and three percent next year, in my view.”
Elsewhere, the Swiss National Bank (SNB) kicked off today’s central bank announcements by keeping its key interest rate at 1.75%.
SNB policymakers acknowledged that inflationary pressures had eased but warned that rising electricity prices and rents could yet trigger a renewed inflation jump.
Norway’s Norges Bank bucked the trend by raising its main interest rate by a quarter percentage point to 4.5%, warning that inflation remained too high.
Yesterday in Washington, the US Federal Reserve held its key lending rate at a 22-year high for a third straight meeting, following a recent flurry of positive economic news.
Policymakers also indicated that they expect to make three rate cuts next year, triggering a stock market rally as investors celebrated the prospect of a faster easing cycle.
“The Fed has delivered an early Christmas present to markets,” said Kellie Wood, at asset management company Schroders.
Later today, the Bank of England is expected to hold its position for a third time and keep its main interest rate at 5.25%. UK inflation slowed sharply to 4.6% in October but remains the highest among the G7 nations.
With reporting from AFP
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The Labour party, always well meaning in opposition, talk the talk until the get in to government the wou6 make any right wing party proud .
How do I run for the election? I could do with a 6 figure salary and absolutely no consequences for telling lies or doing anything wrong in my job. #VoteMe
@TheMinisterForCraic: and expenses so you can buy lunch for your cronies without needing receipts!
@Tessa Madden: I’ll buy everyone who votes for me lunch. I’ll also promise you anything you want just for your vote. Then when I get in I’ll do whatever I want in terms of decisions, I’ll ignore all of the promises I said and I’ll fill my pockets as much as I can in this short time in charge because I couldn’t careless about the future of Ireland, the future of my own family is all I care about it. #VoteMe
@TheMinisterForCraic: not to mention a fat pension for life after the gravy train reaches the terminus.
Ivana Back? Is she new, I don’t think I’ve ever heard of her or of her having an opinion no one asked.
@This time its personable!: Poor Ivana. God love her. She should cop on and get a real job.
Jesus labour are the gift that keep on giving ha. Alan Kelly in charge and all of a sudden then thobk they have a conscience. Would make ya possibly get them your No.4 vote. Almost. God love her hasn’t a hope and either do FG on retaining the seat, with their voice of a generation ( with supreme Court parents and grandparents) candidate. Both really understand the working man
Another Has Been
@pat seery: you have to be someone to start with before you become a has been…
@pat seery: Very poor grammar. “Another was”.
@Paul Jude Redmond: A neverwasser
If people don’t get out and vote, nothing will change.
@Jules:
Vote for who?
@The Grand Nagus: whoever you choose, but vote. The generally low turnout of voters perpetuates the poor standard of government
@Jules: no it’s the candidates that perpetuates the poor stand of government!
@JongaFe: it’s both
Can’t stand listening to her, still trying to get into Government hopefully not a hope
Labour’s vision of Ireland became FGs version of Ireland when in government. Reduced to six seats , thats when they discovered the road to Damascus moment..
Just a question. Has Ivana won a “popular vote” election in the past?
Some people just can’t take no for an answer
Serial loser going to lose another election.
Another well heeled socialist.. Like Mickey D’s daughter, if you can’t win a real election take a handy number in the Senate spouting oh so progressive platitudes that mean nothing. Our political class are useless. Bacik offers nothing only soundbites for affluent liberals. Labour lost touch with working people a long time ago.
There hasn’t been a good leader of the Labour Party since Dick Spring, Ivana puts her name forward in every election that arises, seanad, council, presidentdency and now have another go at becoming a TD, which she has done enough time and not be elected, this by-election is in constituency where I live, personally I can’t see her been elected, certainly not by residents who live in the working class areas such as myself.
Zzzzzzzz
You have to hopes no hope and Bob hope
Absolutely useless person. Chocolate teapot springs to mind. Never forget labour cutting the ribbon on a soup kitchen.
Bacik has never been elected. That is not going to change.
As she takes a 70,000eur a year salary from taxpayers for her unelected position of senator, she can properly be regarded as a thief.
The Seanad is a stain on Irish democracy.
Bacik is too smart for her own good. Lacks personality. You would never win an arguement against her. Pity as she got bags of potential.
@Rob Jones: if she was that great she wouldn’t have failed to be elected in any of her 3 previous attempts at a Dail seat.
@Rob Jones: Being an excellent lawyer doesn’t make her a good public representative. She should stick to law and teaching. She has no chance. Labour is a dead party to the working class after IPhone-Joan.
@Paul Whitehead: “Labour is a dead party to the working class after IPhone-Joan.” Don’t forget Alan Kelly and Eamon ‘Labour’s way or Frankfort’s Way’ Gilmore. No way Labour…Just go away.
@Billy Big Baws: the comment about her name is uncalled for. It’s a Czech name i think
A health and welfare service from CABLE to the grave ??? So when does this service become available?
Bacik is head and shoulders in intellect above most Irish politicians which means of course she’s never elected. I’m amazed she’s never got in somewhere. I’d vote for her if I was in DB South. I don’t always agree with her but at least she has ideas
Whatever your views on the Labour Party Ivana Bacik is a good opreator with a long track record on social issues and would be a great addition to the Dáil. She does not deserve the negativity on show in these comments.
Any prospective candidate talking about house prices from this constituency smacks of hypocrisy.
@Billy Big Baws: Igno rant, rac ist lo ut.
She does know and remember labours vision changes when they get into government..what was it… labours way not frankfurts way
have your say