I=5
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%.
I=5
ECB kept interest rate unchanged at 2% as was expected
ECB kept interest rate unchanged at 2% as was expected by the market.
“The 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 Council’s assessment of the inflation outlook is broadly unchanged. The economy has continued to grow despite the challenging global environment,” the post-meeting statement reads.
“From a monetary policy point of view, we are in a good place,” Lagarde told CNBC’s Annette Weisbach. “Is it a fixed, good place? No. But we will do whatever is needed to make sure we stay in a good place.”
However, it cautioned that the outlook remains uncertain.
“However, the outlook is still uncertain, owing particularly to ongoing global trade disputes and geopolitical tensions.”
A post was merged into an existing topic: FED Monetary Policy
I=5
ECB kept interest rate unchanged at 2% as was expected
“Inflation 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,” ECB said.
Some central bank policymakers said the euro’s appreciation against the dollar is a concern.
“Moreover, 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,” Lagarde said.
I=7
ECB hikes interest rates by 25 basis points as was widely expected by the market, due to rising energy prices
ECB raised its key interest rate by 25 basis points to 2.25% as was largely expected by the market.
“The war in the Middle East is generating inflation pressures, and the decision to raise rates is robust across a range of scenarios mapping out how the shock might evolve and affect the medium-term outlook for the euro area,” it said in a statement.
The central bank raised their headline inflation projects to an average of 3.0% in 2026, 2.3% in 2027 and 2.0% in 2028, from 2.6%, 2.0% and 2.1% respectively in March.
They lowered the core inflation projections to an average of 2.5% in 2026 and 2027 and 2.2% in 2028, from 2.3%, 2.2% and 2.1% respectively.
They lowered their GDP projections to an average of 0.8% in 2026, 1.2% in 2027 and 1.5% in 2028, from 0.9%, 1.3% and 1.4% respectively.
The officials said they are “not pre-committing to a particular rate path” but “remain well positioned to navigate the uncertainty caused by the war.”
I=5
ECB kept interest rate unchanged at 2.25%, as was expected
ECB kept its key interest rate unchanged at 2.25%, as was expected by the market but traders now eye 0.25% rate hike in September.
“The outlook for energy prices, while highly volatile, currently stands close to the baseline of the June Eurosystem staff projections and well above the levels recorded prior to the conflict in the Middle East. Uncertainty remains high and the full inflationary impact of the energy shock has yet to play out,” ECB said in a statement.