2025 inflation seen at 2.0% vs. previous 2.2%; 2026 revised to 1.8% from 2.0%. 2025 GDP growth seen at 1.1% vs. 0.9%, 2026 at 1.1% vs 1.2% Euro zone companies report slowdown in activity and China competition. Tariffs to have 0.06% downward impact on inflation in both 2025 and 2026, broadly neutral on balance in 2027.

Inflation is “more uncertain than usual due to trade tensions,’’ Lagarde said at a press conference following the ECB meeting. Related: Former Fed Chair sends stern message

The European Central Bank left interest rates unchanged on Thursday and offered a modestly upbeat assessment of the euro zone economy, raising doubts among investors about further policy easing even while U.

There’s little reason for the European Central Bank to lower interest rates further unless the economy suffers a major blow, according to Governing Council member Martins Kazaks.

The European Central Bank (ECB) maintained its interest rate at 2% on Thursday as it put a pause in the rate-cutting cycle amid stable inflation and renewed global uncertainty.

European Central Bank policymakers are setting a high bar for an interest rate cut in September and they would need to see a significant deterioration in growth and inflation before backing further easing,

European Central Bank policymakers pushing for another reduction in interest rates face an uphill battle, according to people familiar with the matter.

BNP Paribas economists are no longer calling for a 25 basis point cut from the European Central Bank in September following the press conference from ECB chief Christine Lagarde. BNP said Lagarde played down an undershooting of ECB staff inflation forecasts,

The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts.