Euro area zone: ECB before dilemma while inflation remains high

Balanced central bankers. L ‘inflation He has been the main economic subject of recent years and it remains. While The Federal Reserve (Fed) of the United States is still hesitant to rebuild its main ratesThe European Central Bank (ECB) Lied again on April 17th. Now, unlike the US, now, Inflation does not drop in the euro area. What to block ECB in its speed drop?

Key points of this article:

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• The European Central Bank recently reduced its main levels despite the persistent inflation in the euro area, according to the data today stuck by 2.2 %.
• ECB faces dilemma: they continue to reduce rates to stimulate growth or keep them face to face inflation that remains above its goals.

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Permanent inflation that remains 2.2% in the euro area

This Friday, May 2, 2025,Consumer price index for Euro area zone has been published and remains unchanged. Indeed this inflation indicator remained Blocked to 2.2%as the previous month. This, although the market consensus hoped for a slight decline of 2.1%.

As mentioned in particular the publication of Bloomberg, if one exclude most volatile products such asfood andenergyThis inflation is even 2.7 %. And also there, above the forecasts of economic observers.

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Will the ECB continue to reduce its main rates?

In the face of this situation Central Bank they face dilemma. On the one hand she could decide maintain its interest rates in the face of this inflation that no longer wants to reduce, and on the other hand could be selected Continue to reduce them Stimulate economic growth.

According to Bloomberg, it seems that ECB officials appear ‘ Loans to continue seven discounts Renting the costs they operated since last June ”. already very low Now in the fork from 2,25 to 2.65% From April 17, 2025 and a decrease of 25 basic points.

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If the United States is a question of whether the Fed will be fall Therefore, from her main rates in the euro area, the dilemma of the European Central Bank is rather whether they go pause Their decrease in rates. Knowing that European central bankers also have another hot topic to deal with namely ECB wishes to quickly save its digital eurowhile European nations do not want this MNBC (Central Bank Digital Mint).