Because the conditions for an increase are unlikely to be met in this timeframe, he added. The risks to the growth outlook are on the downside.
In its updated outlook, the ECB practically pegged record-low interest rates for a long time. It wants to keep it at the current level or an even lower level until it can be seen that inflation has reached two percent and is also stuck in this area. The ECB has kept the key interest rate at a record low of 0.0 percent since March 2016. The so-called deposit rate has been minus 0.5 percent since September 2019. The money houses have to pay extra if they park excess money at the central bank. (APA)