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ECB keeps key interest rate unchanged at 2%, as was widely expected by the market
ECB kept its key interest rate unchanged at 2%, as was widely expected by the market.
ECB said their assessment of the inflation outlook is broadly unchanged.
ECB raised their 2025 economic growth projection to 1.2% from 0.9% and lowered their projection for 2026 to 1.0% from 1.1%.
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ECB kept interest rate unchanged at 2% as was expected
ECB kept interest rate unchanged at 2% as was expected by the market.
âThe Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation remains close to the 2% medium-term target and the Governing Councilâs assessment of the inflation outlook is broadly unchanged. The economy has continued to grow despite the challenging global environment,â the post-meeting statement reads.
âFrom a monetary policy point of view, we are in a good place,â Lagarde told CNBCâs Annette Weisbach. âIs it a fixed, good place? No. But we will do whatever is needed to make sure we stay in a good place.â
However, it cautioned that the outlook remains uncertain.
âHowever, the outlook is still uncertain, owing particularly to ongoing global trade disputes and geopolitical tensions.â
A post was merged into an existing topic: FED Monetary Policy
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ECB kept interest rate unchanged at 2% as was expected
âInflation should stabilize at its 2% target in the medium term. The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defense and infrastructure and the supportive effects of the past interest rate cuts are underpinning growth,â ECB said.
Some central bank policymakers said the euroâs appreciation against the dollar is a concern.
âMoreover, a stronger euro could bring inflation down beyond current expectations. More volatile and risk-averse financial markets could weigh on demand, and thereby also lower inflation,â Lagarde said.