The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
January 24, 2019MONETARY POLICY: EURO AREA At today’s meeting, the Governing Council of the European Central Bank (ECB) announced that the key ECB interest rates are unchanged with the interest rates on main refinancing operations, marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40% respectively. The rates are expected to remain at their present levels at least through the summer of 2019, and for as long as necessary in order to converge inflation levels to around 2 per cent over the medium term. Net purchases under the asset purchase programme (APP) ended in 2018 with the ECB now intending to reinvest the full principal payments from maturing securities for an extended period of time past the date when it starts raising key interest rates.
Euro area real GDP grew 0.2 per cent in Q3 2018. Recent data has continued to be weaker than expected due to slowing external demand and some country- and sector-specific factors; near-term growth momentum is weaker than previously anticipated. Favourable financial conditions, employment gains, rising wages, lower energy prices, and global expansion are all supportive of ongoing expansion in the euro area.
Euro area inflation was 1.6 per cent in December 2018, declining from 1.9 percent the previous month due to lower energy price inflation. Headline inflation is likely to decline further based on oil price futures. Underlying inflation remain generally muted, but labour cost pressures are continuing to strengthen and broaden amid high levels of utilization and tighter labour market. The underlying inflation trend is expected to increase over the medium term.
Sources:
European Central Bank
<--- Return to Archive