ECB Holds Rates Steady Amid Inflation Target
The European Central Bank (ECB) kept its key interest rates unchanged on Thursday, in line with market expectations, pausing after eight consecutive cuts since June 2024, CE Report quotes Anadolu Agency
The deposit rate remains at 2%, its lowest level since November 2022, while the main refinancing and marginal lending rates stay at 2.15% and 2.40%, respectively.
Inflation in the eurozone has stabilized at the ECB’s 2% medium-term target. The ECB said domestic price pressures are easing, wage growth is slowing, and the eurozone economy remains resilient despite global challenges.
However, the bank warned that the outlook remains “exceptionally uncertain,” particularly due to escalating trade tensions between the EU and the US.
The ECB reaffirmed its commitment to a data-dependent approach in future decisions and to maintaining price stability over the medium term.
The announcement comes as the EU and US continue trade talks. President Donald Trump has threatened a 30% tariff on all EU imports from August 1, though reports suggest a possible compromise involving 15% reciprocal tariffs and sector-specific exemptions.
