ECB, tariffs and interest rate
Digest more
The European Central Bank left interest rates unchanged on Thursday and offered a modestly upbeat assessment of the euro zone economy, raising doubts among investors about further policy easing even while U.
Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.
2don MSN
The European Central Bank has left interest rates unchanged as it waits to see the impact of U.S. President Donald Trump’s tariffs on the economy before deciding whether to cut rates again.The bank’s governing council announced Thursday at its skyscraper headquarters in Frankfurt that it would leave its benchmark deposit rate at 2%.
"At 2%, rates remain squarely to the middle of the ECB’s 1.5% to 2.5% neutral range. Uncertainty is highly elevated, however, and, if trade tensions escalate, further easing may well be required later in the year to help support business and consumer confidence." SYLVAIN BROYER, CHIEF EMEA ECONOMIST, S&P GLOBAL RATINGS:
There’s little reason for the European Central Bank to lower interest rates further unless the economy suffers a major blow, according to Governing Council member Martins Kazaks.