ECB Key Interest Rates, September 2024 Monetary Policy meeting

One of the primary decisions from the ECB meeting was to lower the deposit facility rate by 25 basis points (bps), bringing it to 3.50%, effective from September 18, 2024. The interest rates on the main refinancing operations and the marginal lending facility were also reduced to 3.65% and 3.90%, respectively.

The ECB made this decision based on updated assessments of inflation and the strength of monetary policy transmission, noting that inflation dynamics remained in line with earlier expectations, but wage growth and services inflation had been slightly higher than projected​.

Additionally, the Governing Council reaffirmed that interest rate decisions will continue to be data-dependent and determined on a meeting-by-meeting basis, without pre-committing to a specific rate path. This emphasizes the ECB's flexible approach to managing the monetary landscape and achieving its inflation targets​.