European Central Bank Keeps Interest Rates Unchanged
July 24, 202559 ViewsRead Time: 1 minutes
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The European Central Bank kept interest rates unchanged on Thursday, after cutting them eight times in a year while negotiations are ongoing in Brussels and Washington over a trade deal.
The European Central Bank had reduced the interest rate to 2% last month from 4% a year ago, following the taming of the sharp rise in prices that followed the end of the COVID-19 pandemic and the full-scale Russian invasion of Ukraine in 2022.
With inflation now returning to the European Central Bank's target of 2%, which is expected to remain at this level, policymakers chose to keep the interest rate unchanged on Thursday as trade talks between the European Union and the administration of US President Donald Trump appeared to be in their final stage.
The Governing Council of the European Central Bank, which sets the bank's policies, painted a balanced picture of the economy, with short-term trade uncertainty offset by future public investment.
The bank said, "This partly reflects the previous interest rate cuts made by the Governing Council in the past, as the economy has so far shown resilience in general amid globally challenging conditions... particularly due to trade disputes".
The European Central Bank had reduced the interest rate to 2% last month from 4% a year ago, following the taming of the sharp rise in prices that followed the end of the COVID-19 pandemic and the full-scale Russian invasion of Ukraine in 2022.
With inflation now returning to the European Central Bank's target of 2%, which is expected to remain at this level, policymakers chose to keep the interest rate unchanged on Thursday as trade talks between the European Union and the administration of US President Donald Trump appeared to be in their final stage.
The Governing Council of the European Central Bank, which sets the bank's policies, painted a balanced picture of the economy, with short-term trade uncertainty offset by future public investment.
The bank said, "This partly reflects the previous interest rate cuts made by the Governing Council in the past, as the economy has so far shown resilience in general amid globally challenging conditions... particularly due to trade disputes".
