Full price assertion from the ECB April price determination

11 April 2024

The Governing Council right this moment determined to maintain the three key ECB rates of interest unchanged. The incoming info has broadly confirmed the Governing Council’s earlier evaluation of the medium-term inflation outlook. Inflation has continued to fall, led by decrease meals and items value inflation. Most measures of underlying inflation are easing, wage development is steadily moderating, and corporations are absorbing a part of the rise in labour prices of their income. Financing circumstances stay restrictive and the previous rate of interest will increase proceed to weigh on demand, which helps to push down inflation. However home value pressures are robust and are conserving companies value inflation excessive.

The Governing Council is decided to make sure that inflation returns to its 2% medium-term goal in a well timed method. It considers that the important thing ECB rates of interest are at ranges which can be making a considerable contribution to the continuing disinflation course of. The Governing Council’s future selections will make sure that its coverage charges will keep sufficiently restrictive for so long as essential. If the Governing Council’s up to date evaluation of the inflation outlook, the dynamics of underlying inflation and the energy of financial coverage transmission had been to additional enhance its confidence that inflation is converging to the goal in a sustained method, it could be applicable to cut back the present degree of financial coverage restriction. In any occasion, the Governing Council will proceed to observe a data-dependent and meeting-by-meeting strategy to figuring out the suitable degree and period of restriction, and it isn’t pre-committing to a selected price path.

Key ECB rates of interest

The rate of interest on the principle refinancing operations and the rates of interest on the marginal lending facility and the deposit facility will stay unchanged at 4.50%, 4.75% and 4.00% respectively.

Asset buy programme (APP) and pandemic emergency buy programme (PEPP)

The APP portfolio is declining at a measured and predictable tempo, because the Eurosystem now not reinvests the principal funds from maturing securities.

The Governing Council intends to proceed to reinvest, in full, the principal funds from maturing securities bought below the PEPP throughout the first half of 2024. Over the second half of the 12 months, it intends to cut back the PEPP portfolio by €7.5 billion monthly on common. The Governing Council intends to discontinue reinvestments below the PEPP on the finish of 2024.

The Governing Council will proceed making use of flexibility in reinvesting redemptions coming due within the PEPP portfolio, with a view to countering dangers to the financial coverage transmission mechanism associated to the pandemic.

Refinancing operations

As banks are repaying the quantities borrowed below the focused longer-term refinancing operations, the Governing Council will often assess how focused lending operations and their ongoing compensation are contributing to its financial coverage stance.


The Governing Council stands prepared to regulate all of its devices inside its mandate to make sure that inflation returns to its 2% goal over the medium time period and to protect the sleek functioning of financial coverage transmission. Furthermore, the Transmission Safety Instrument is accessible to counter unwarranted, disorderly market dynamics that pose a critical risk to the transmission of financial coverage throughout all euro space international locations, thus permitting the Governing Council to extra successfully ship on its value stability mandate.

The President of the ECB will touch upon the issues underlying these selections at a press convention beginning at 14:45 CET right this moment.