The rate announced on Thursday (4) was in line with the increase announced by the Fed on Wednesday
On Thursday (the fourth), the European Central Bank announced another 0.25 percentage point increase in the interest rate in the eurozone. According to a statement issued by the institution, the measure is linked to the persistence of high inflation in the region.
“Nominal inflation has eased in recent months, but pressures on core prices remain strong,” the ECB said in a statement.
Past interest rate hikes have been “forcefully” transmitted to the eurozone credit system, but “the force of transmission to the real economy remains uncertain,” the bank says.
inflation and economic activity
Inflation in the eurozone rose again in April, at 7% annually, after hitting 6.9% in the previous month. However, the bloc’s core CPI slowed to 5.6%.
Moreover, manufacturing PMIs for the Eurozone, Germany and the UK fell last month. The German PMI drew particular attention as it posted its lowest level since May 2020.
The main European economy still recorded a decline of 2.4% in retail sales in March, in contrast to an expected rise of 0.4% compared to February.
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Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
