FRANKFURT / LONDON (IT BOLTWISE) – The European Central Bank has decided to keep interest rates unchanged in response to ongoing global uncertainties. Despite the US Federal Reserve’s interest rate cuts, the ECB remains cautious and is closely monitoring economic developments. Experts do not expect any further interest rate cuts this year.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
The European Central Bank (ECB) decided to leave interest rates unchanged in a recent meeting in Florence. This decision comes amid global economic uncertainties compounded by trade disputes and geopolitical tensions. ECB President Christine Lagarde stressed that the economic outlook remains uncertain, underscoring the need for cautious monetary policy.
In recent months, the ECB has implemented a series of interest rate cuts to support the euro area economy. The deposit interest rate, which is important for banks and savers, remains at 2.0 percent. This stability in interest rate policy contrasts with recent decisions by the US Federal Reserve, which has lowered its key interest rates to stimulate the economy.
The ECB’s decision to keep interest rates unchanged is seen by many economists as appropriate as inflation in the euro area appears to be under control. The inflation rate for the current year is estimated at 2.1 percent, which is only slightly above the central bank’s target. Still, core inflation, which excludes volatile components such as food and energy, remains stubbornly stuck at 2.3 percent.
Another factor influencing the ECB’s decision is the relative stability of the euro area economy. Despite the challenges posed by higher US tariffs, gross domestic product (GDP) shows slight growth, driven by countries such as Spain and Portugal. These developments give the ECB the flexibility to design its interest rate policy flexibly should economic conditions change.
Recent developments in the trade dispute between the US and the EU have also contributed to stability. A trade agreement between Washington and Brussels has eased tensions, although US President Donald Trump remains unpredictable. This easing of the trade conflict could help the ECB plan its monetary policy measures better and be prepared for future challenges.
*Order an Amazon credit card with no annual fee with a credit limit of 2,000 euros! a‿z
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “ECB keeps interest rates stable despite global uncertainties”.
The post ECB keeps interest rates stable despite global uncertainties appeared first on Veritas News.
