ECB leaves rates steady
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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.
Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.
European Central Bank policymakers are setting a high bar for an interest rate cut in September and they would need to see a significant deterioration in growth and inflation before backing further easing,
2don MSN
The European Central Bank is leaving interest rates unchanged as it waits to see how big a blow U.S. President Donald Trump's tariffs will inflict on the economy before deciding whether to cut rates again.
European bonds dropped for a third day as traders continued to reduce their bets on a final European Central Bank interest-rate cut this year.
Markets are pricing in the ECB keeping its deposit rate at 2%, having reduced it by 25 basis points eight times over the last year as inflation cooled and the eurozone’s economic growth struggled for traction.