ECB leaves key interest rate unchanged at 4.5 percent - economists predict interest rate cuts in the coming year.

ECB leaves key interest rate unchanged at 4.5 percent - economists predict interest rate cuts in the coming year.

The ECB has decided to leave the key interest rate at 4.5 percent, as expected. Some economists expect the ECB to cut interest rates next year, although there was no specific mention of this from ECB President Christine Lagarde. Inflation in the euro area has weakened significantly, while economic output has fallen.

The ECB's new interest rate decisions could have a significant impact on the financial market. Rising interest rates make loans more expensive, which can slow down demand and counteract high inflation. However, more expensive loans can also be a burden for the economy, as loan-financed investments become more expensive.

According to Lagarde, they must remain vigilant to ensure that domestic price pressures decrease. If this occurs, it could open the door for interest rate cuts. As www.finanzen.net reports, some economists expect monetary policy to be eased soon and are predicting interest rate cuts of up to 150 basis points in the coming year.

All in all, the ECB's recent interest rate decisions are of great importance for the financial sector and for the entire market. It remains to be seen how the interactions between interest rates and inflation will develop in the next few months. According to a report from www.finanzen.net, they are leaving interest rates in the euro area unchanged for the second time in a row, while inflation has recently surprisingly weakened significantly. As www.finanzen.net reports, the ECB has also weakened its forecast for inflation and economic growth in the euro area, which makes monetary easing more likely in the future.