ECB Halts Rate Cuts Amid Trade Uncertainty
The European Central Bank kept interest rates unchanged during its July meeting, effectively marking the end of its current easing cycle after eight consecutive cuts that brought borrowing costs to their lowest levels since November 2022.
The main refinancing rate remains at 2.15%, while the deposit facility rate holds at 2.0%. Policymakers struck a wait-and-see stance, as they evaluate the impact of lingering trade uncertainty and the potential fallout from proposed US tariffs on economic growth and inflation. Inflation hit the ECB’s 2% target in June, adding to the case for a pause in policy adjustments.
Source: Trading Economi