ECB Holds Rates Steady
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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.
Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.
The ECB's June estimate showed that higher U.S. tariffs would result in lower growth and - depending on any EU retaliation - lower medium-term inflation in the euro zone. Even the ECB's baseline projection from June, which incorporates 10% tariffs from the United States, saw price growth below 2% over the next 18 months.
European bonds dropped for a third day as traders continued to reduce their bets on a final European Central Bank interest-rate cut this year.
In June, the ECB lowered its key deposit rate for an the eighth consecutive quarter-point reduction. President Donald Trump thinks the Fed should follow suit.
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Cryptopolitan on MSNECB holds interest rates steady for the first time in a year, finally aligning with the FedThe ECB has just done something it hasn’t done in over a year: nothing. On Thursday, the European Central Bank decided to keep interest rates unchanged after
Markets are pricing in the ECB keeping its deposit rate at 2%, having reduced it by 25 basis points eight times over the last year as inflation cooled and the eurozone’s economic growth struggled for traction.