One month after enacting its first interest rate cut in nearly five years, the European Central Bank (ECB) opted to leave rates unchanged.
“While some measures of underlying inflation ticked up in May owing to one-off factors, most measures were either stable or edged down in June,” said the ECB’s Governing Council in a statement. “In line with expectations, the inflationary impact of high wage growth has been buffered by profits. Monetary policy is keeping financing conditions restrictive. At the same time, domestic price pressures are still high, services inflation is elevated and headline inflation is likely to remain above the target well into next year.”
The decision will keep the ECB’s key interest rate at 3.75%. The Governing Council stated it would “continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction.” However, the council added that it was “not pre-committing to a particular rate path.”
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They should be raising the rates until they drop the prices. You can’t have rates and prices high at the same time. Florida is 30% overvalued. If you drop the value buyers will get relief with downpayments, insurance cost, and taxes. We have greedy people just holding on for deer life without dropping the prices. So we should allow rates to continue Until they drop the prices.