Europe central bank reported first loss after almost 20 year. Many have seen some changes in rates who sky jumped in 2023 making loans expensive. All members of EU and non-EU countries who use EURO are concerned about what will happen in future with EURO zone.  

This was one necessary step to stop losing money says ECB and announced a rate cut in 2024. The ECB lose last year €1.3 billion because of high inflation who have done enough damage to economy in Europe. All financial risks and losses of ECB need to stop so that economies can start grow again. The growth of Europe economy is slowing down rapidly in 2023 and 2024.  All this caused by high inflation and job losses last year. Many businesses have failed to pay off its debt due to high interest rates. Job cuts and new budget savings across countries in Europe are sign that indicate market changes.

The ECB quote that its interest rates are higher for negative territories to a record 4% in respond to rising inflation after Covid 19 and partially losing access to energy sources.

„The ECB said that it expected further losses for the following few years that would not impact “its ability to conduct effective monetary policy,” before returning to sustained profits.

Europe central bank will continue to lose money in 2024 and 2025. The inevitable situation that befell the ECB in 2023 is the biggest blow to the economy of the European Union. As predicted by economists in the EU, the situation will begin to calm down slowly.