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The European Central Bank (ECB) announced on October 26th that it would keep interest rates unchanged. It was stated that the impact of previous interest rate hikes continued to strongly reflect on financing conditions. Officials also made statements regarding the Pandemic Emergency Purchase Program (PEEP), and according to this, it was announced that principal payments would be reinvested by the end of 2024 at the latest.
<h2 class="p1" style="text-align: justify" id="unexpected-decision-from-ecb">Unexpected Decision from ECB</h2>
The European Central Bank (ECB) refrained from raising interest rates for the first time in 15 months on October 26th, at a time when data indicating the continuation of economic contraction in the European Union increased. The ECB continued to keep the benchmark interest rate in the 20 countries that use the euro, the fiat currency, at its highest level since the currency was launched in 1999, which is 4%. The following statements were included in the central bank’s announcements:
<blockquote>
 “Inflation is still expected to remain very high for a very long time, and domestic price pressures continue to remain strong. At the same time, inflation has dropped significantly in September, and most of the measures underlying inflation have continued to ease.”
</blockquote>
The decision to pause the interest rate hike, following 10 consecutive rate hikes, came after a data indicating that the decline in inflation is continuing and economic activities are further slowing down in the region. An survey published among companies operating in the manufacturing and service sectors in the Eurozone on October 24th indicated a sharp decline in production along with a weakening demand.
<img decoding="async" class="aligncenter wp-image-89573 size-full" src="https://coin-turk.com/wp-content/uploads/2020/05/abnin-750-milyar-euroluk-tesvik-paketi-btcyi-nasil-etkiler.jpg" alt="" width="1200" height="675">
<h2 id="pmi-data-indicates-recession">PMI Data Indicates Recession</h2>
According to the Purchasing Managers’ Index (PMI), companies made employment cuts indicating the first decrease in personnel since the Covid-19 quarantine period at the beginning of 2021. The index, which was 47.2 in September, declined to 46.5 in October, reaching its lowest level in the past 35 months. A value below 50 for this index indicates a contraction in <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">market</a> conditions.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, who collaborated with S&amp;P Global to analyze PMI data, made the following comment about these data:
<blockquote>
 “Things are going from bad to worse in the Eurozone. Seeing a slight recession in the Eurozone in the second half of this year would not catch us unprepared.”
</blockquote>
The survey of lenders published by the ECB on October 24th reveals that the demand for business loans and mortgage loans continued to decline sharply in the third quarter of the year, surpassing the expectations of banks. The report also stated that banks continued to tighten credit standards for all loan categories. Continue Reading: <a href="https://en.coin-turk.com/ecb-keeps-interest-rates-unchanged-despite-unexpected-decision/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/ecb-keeps-interest-rates-unchanged-despite-unexpected-decision/</a>

ECB Keeps Interest Rates Unchanged Despite Unexpected Decision

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