Financial News: ECB Leaves Rates Unchanged As Expected

ECB Leaves Rates Unchanged As Expected

07/24/2025 - 09:55:00 (RTTNews)

(RTTNews) - The European Central Bank held its key interest rates steady on Thursday, in line with expectations, as policymakers assessed that price pressures continue to ease, but acknowledged that the economic environment remains highly uncertain mainly due to the trade tariff wars.

The Governing Council, led by ECB President Christine Lagarde, kept the deposit rate unchanged at 2.00 percent. The refinancing rate was retained at 2.15 percent and the marginal lending rate at 2.40 percent.

The previous change in euro area interest rates was a 25-basis point reduction in June. The bank had cut interest rates by a quarter basis points each in every rate-setting session since September. The ECB said that the euro area economy has so far proven resilient in a challenging global environment, which still is exceptionally uncertain, mainly because of trade disputes.

"The Governing Council is determined to ensure that inflation stabilizes at its 2 percent target in the medium term," the bank said. "It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance."

"The Governing Council is not pre-committing to a particular rate path," the bank reiterated.

Given the current situation when Eurozone inflation is 2 percent and is likely to hover around this for some time, ING economist Carsten Brzeski said the ECB can simply wait for who is holding the better trade cards and whether actual inflation will really behave as predicted.

"Still, with two more weaker inflation prints and hard macro data weaker than soft data over the summer, we can still see one final rate cut at the September meeting," the economist added.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Business Inventories Rise In Line With Estimates In June (06 hr(s), 46 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed business inventories in ...Full Story»

U.S. Consumer Sentiment Unexpectedly Deteriorates In August (07 hr(s), 04 min(s), 13 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of August, a ...Full Story»

U.S. Industrial Production Pulls Back Slightly In July (07 hr(s), 33 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Federal Reserve on Friday showed a modest decrease by U.S. in ...Full Story»

New York Manufacturing Index Unexpectedly Climbs To Nine-Month High In August (07 hr(s), 57 min(s), 13 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of New York released a report on Friday showing regional manu ...Full Story»

U.S. Consumer Sentiment Index Unexpectedly Decreases In August (08 hr(s), 24 min(s), 13 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of August, a ...Full Story»

U.S. Import Price Growth Exceeds Estimates In July (08 hr(s), 31 min(s), 13 sec(s) ago)
(RTTNews) - The Labor Department released a report on Friday showing import prices in the U.S. inc ...Full Story»

U.S. Retail Sales Climb 0.5% In July, In Line With Estimates (09 hr(s), 04 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed retail sales in the U.S. ...Full Story»

U.S. Industrial Production Edges Slightly Lower In July (09 hr(s), 11 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Federal Reserve on Friday showed a modest decrease by U.S. in ...Full Story»