US EditionECB keeps interest rate at 2% as growth holds up against trade tension
- The ECB held its deposit facility rate at 2% on Thursday, marking the third consecutive meeting with rates unchanged after cuts earlier this year.
- With inflation near target, the ECB opted to hold rates as inflation settled around 2% and eurozone GDP grew 0.2% in the third quarter, supporting the decision.
- Core inflation rose to 2.4% in September from 2.3% in August, while the main refinancing operations rate and marginal lending facility rate remained unchanged on Thursday.
- Eyes are on Lagarde's press conference for clues on rate direction as the European Central Bank left the door open to a possible December rate hike, signaling optional tightening later this year.
- Longer term, headwinds from France's political crisis and a U.S. 15% tariff remain important as Deutsche Bank analysts see 2% as likely the end of ECB cuts, with moderate increases only late next year.
135 Articles
135 Articles
ECB keeps interest rates unchanged as Christine Lagarde says risks receding
The European Central Bank (ECB) kept interest rates unchanged at 2pc for the third meeting in a row on Thursday and repeated that policy was in a "good place" as economic risks recede and the euro zone shows continued resilience in the face of uncertainty.
The Governing Council of the European Central Bank (ECB) left its key interest rates for the euro area unchanged for the third consecutive time, as expected. Annual inflation remains close to the target of 2 percent and inflation expectations are also unchanged, the Council noted.
ABC FOX Montana
ECB holds rates steady with eurozone more resilient
The European Central Bank kept interest rates unchanged again Thursday, saying inflation was in check and risks to the eurozone economy had eased while warning of continued risks from trade and geopolitical tensions.
The European Central Bank has once again not touched the key interest rates in the eurozone, which means that the deposit rate, which is important for banks and savers, remains at 2.0 percent.[more]]>
Economic activity in the euro area could stagnate in the second half of the year, while inflation is only slightly above the ECB's target. This opens up several options for action for central bankers.
Within a year, the euro currency guardians have halved the deposit rate that is important for banks and savers. Now the European Central Bank is keeping silent for the time being, and that has its reasons.
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