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European Central Bank leaves interest rates unchanged as it assesses impact of Trump tariffs
FRANKFURT, GERMANY, JUL 24 – The European Central Bank paused rate cuts after eight reductions since June 2024, citing trade dispute risks and resilient eurozone inflation at 2%, awaiting clearer economic data.
- The European Central Bank held its key interest rate steady at 2% on Thursday after eight cuts since June last year.
- The decision followed rising uncertainty due to ongoing US-EU trade talks and threatened tariffs with an August 1 deadline.
- The ECB noted inflation had fallen to its 2% target amid resilient economic activity but warned higher US tariffs could harm growth.
- ECB President Christine Lagarde indicated that the central bank is approaching the conclusion of its current monetary policy phase and will continue to make decisions based on data at each meeting.
- The ECB may consider further rate cuts if trade tensions escalate and negatively impact eurozone export earnings and economic stability.
294 Articles
294 Articles
Dollar steady as Europe holds rates, Fed and tariffs in focus | Honolulu Star-Advertiser
The dollar traded sideways against the euro today after the European Central Bank held rates steady, and was wedged between prospects for higher Japanese rates that supported the yen and worries about political risk after Sunday’s elections.
After a series of seven consecutive interest rate cuts, the ECB pauses and lets investors puzzle about the further price. Dietmar Deffner talks to Karsten Junius, Chief Economist Safra Sarasin about this and other stock market issues of the day.
The European Central Bank (ECB) left its key interest rate unchanged at 2 percent, as expected, after a monetary policy meeting of its Governing Council on Thursday. It wants to wait to see the impact of a potential increase in US tariffs on the eurozone economy.
ECB holds interest rates steady amid tariff uncertainty
The European Central Bank maintained its benchmark interest rate at 2%, as uncertainty over the US’ tariff plans prompted policymakers to halt their yearlong rate-cutting campaign.An EU spokesperson said Thursday that a trade deal with the US is now “within reach” after weeks of tense talks, during which US President Donald Trump threatened 30% baseline tariffs on EU exports to the US, and the bloc prepared retaliatory tariffs on $84 billion wor…
The key interest rates in the euro area remain unchanged.
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