European System of Central Banks

The EU on Wednesday predicted lower inflation in the eurozone in 2024 than previously forecast but warned the single-currency area's economy still faced risks from geopolitical tensions including wars in Ukraine and Gaza.

The European Central Bank (ECB) has weighed in on Bulgaria's draft Law on the adoption of the euro, signaling the need for revisions to ensure alignment with European regulations. In an opinion published on the Bulgarian Ministry of Finance's website, the ECB underscores the importance of achieving full compliance with EU directives, particularly in the realm of monetary policy.

Greek banks made new purchases of bonds and investment assets amounting to 9.3 billion euros in 2023, financed by the excess liquidity secured through the increase in deposits, as in the absence of sufficient demand for new loans the credit sector is looking for investment opportunities with high yields.

Business activity in the eurozone picked up in April thanks to "increasingly robust" growth in the services sector, a closely watched survey showed on April 23.

Experts suggest that Bulgaria's admission to the Eurozone is more realistic in January 2026, according to insights from Cinzia Alcidi of the Brussels Center for the Study of European Politics, as reported by Politico.

Buoyed by falling inflation, the European Central Bank is expected to keep borrowing costs on hold one last time on April 11 while laying the ground for a first interest rate cut in June.

The Frankfurt-based institution has left its key rates unchanged since October 2023, following an unprecedented streak of hikes to tame red-hot inflation.

The inflation that has squeezed European shoppers fell more than expected in March to 2.4 percent, as cost spikes in the grocery aisle eased and overall price rises headed down in the two biggest economies, Germany and France.

European Central Bank policymaker Yannis Stournaras said on Tuesday that consensus was building within the European Central Bank for a rate cut in June, if inflation develops as projected.

The European Central Bank froze interest rates again on Thursday as it held off from starting to cut borrowing costs amid concerns that sticky inflation is not easing as fast as hoped.

The Frankfurt-based institution's governing council held the benchmark deposit rate steady at a record four percent for a fourth straight meeting, as widely expected.

The European Central Bank is expected to freeze interest rates again this week, with officials wary of starting to cut before they see more evidence that recent falls in inflation will be sustained.