US EditionModest but steady economic growth likely means no interest rate cut for Europe
The ECB holds rates steady due to steady 0.3% quarterly growth and persistent 3.5% inflation in services despite eased trade uncertainty, signaling no cuts likely soon.
- On Thursday, the European Central Bank left its benchmark deposit rate unchanged at 2% in Frankfurt, marking the fourth consecutive meeting without a cut.
- S&P Global surveys show expanding business activity supporting modest growth of around 0.3% per quarter, while a US‑EU trade settlement eased summer uncertainty after threats from U.S. President Donald Trump including a 15% tariff.
- Headline inflation at 2.1% sits roughly in line with the ECB's 2% goal, aided by lower energy prices, while services inflation remained higher at 3.5%, covering hairdressers, hotels, concert tickets, and medical services.
- Keeping rates unchanged keeps borrowing costs elevated across the euro area, shaping mortgages and investment decisions, while European exporters face headwinds amid tariffs and trade frictions.
- Analysts expect Christine Lagarde to repeat that policy is steady at her news conference, signaling continuity as economists think the rate could stay unchanged for months while balancing inflation and growth.
29 Articles
29 Articles
The European Central Bank (ECB) left its key interest rates unchanged on Thursday, as expected, with the key deposit rate remaining at two percent. However, it also improved the outlook for the eurozone economy.
Associated Press News
European Central Bank leaves rates unchanged with economy showing signs of modest growth
The European Central Bank is leaving interest rates unchanged for the fourth meeting in a row as the economy in the 20 countries that use the euro increasingly looks strong enough to get by without the stimulus of lower borrowing costs for businesses and consumers.
The stability of the interest rates of the European Central Bank (ECB) shows a prudent approach to inflation and sustainable economic growth. Read more The European Central Bank Consolidates its Monetary Policy by Maintaining Stable Interest Rates in News.es.
European Central Bank. Image: ECB. The European Central Bank (ECB) decided to keep its official interest rates unchanged, a decision that is in line with market expectations. In its monetary policy decision, the Governing Council of the ECB chose to leave unchanged the three main interest rates: the deposit rate at 2,00 %, the reference rate for main refinancing operations at 2,15 % and the marginal lending facility at 2,40 %. The measure takes …
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