ECB Holds Interest Rates Steady After Eight Cuts

The European Central Bank (ECB) has decided to keep its key interest rates unchanged after eight consecutive cuts. The deposit rate remained at 2%.

This decision reflects the ECB's desire to assess the impact of potential Trump tariffs on inflation. There is disagreement among ECB officials regarding the next steps, with some advocating for further cuts, while others warn of the risk of inflationary pressures due to increased public spending.

ECB President Christine Lagarde is expected to address the ECB's decisions at a press conference.

According to an ECB statement, inflation is currently at the medium-term target of 2%. The ECB will follow a data-driven approach to determine monetary policy.

The interest rates on main refinancing operations and the marginal lending facility remained unchanged at 2.15% and 2.40% respectively.

The ECB is ready to adjust all the instruments at its disposal to ensure that inflation stabilizes at the 2% target in the medium term.