US EditionEuropean Central Bank leaves interest rates unchanged as it assesses impact of Trump tariffs
FRANKFURT, GERMANY, JUL 24 – The European Central Bank paused rate cuts after eight reductions since June 2024, citing trade dispute risks and resilient eurozone inflation at 2%, awaiting clearer economic data.
- On Thursday, the European Central Bank in Frankfurt held its benchmark deposit rate at 2%, ending a streak of cuts that began last September.
- With conditions fragile, the ECB has lowered rates four times this year to 2%, facing an August 1 deadline for potential US tariffs on European exports.
- June inflation held at 2%, aligning with the ECB’s target, EU diplomats said the US proposed a 15% tariff while Julien Lafargue warned the ECB would remain `cautious`.
- If no U.S.-EU trade deal materializes, the ECB may cut rates in September, and observers will watch its meeting-by-meeting decisions based on inflation risks.
- The euro’s nearly 14% rally this year has drawn investors to eurozone assets, while Felix Schmidt warned that more tariff escalation could harm growth and spur further rate cuts.
295 Articles
295 Articles
Uncertainty restrains the ECB and banks defend their profits
Dollar steady as Europe holds rates, Fed and tariffs in focus | Honolulu Star-Advertiser
The dollar traded sideways against the euro today after the European Central Bank held rates steady, and was wedged between prospects for higher Japanese rates that supported the yen and worries about political risk after Sunday’s elections.
After a series of seven consecutive interest rate cuts, the ECB pauses and lets investors puzzle about the further price. Dietmar Deffner talks to Karsten Junius, Chief Economist Safra Sarasin about this and other stock market issues of the day.
The European Central Bank (ECB) left its key interest rate unchanged at 2 percent, as expected, after a monetary policy meeting of its Governing Council on Thursday. It wants to wait to see the impact of a potential increase in US tariffs on the eurozone economy.
ECB holds interest rates steady amid tariff uncertainty
The European Central Bank maintained its benchmark interest rate at 2%, as uncertainty over the US’ tariff plans prompted policymakers to halt their yearlong rate-cutting campaign.An EU spokesperson said Thursday that a trade deal with the US is now “within reach” after weeks of tense talks, during which US President Donald Trump threatened 30% baseline tariffs on EU exports to the US, and the bloc prepared retaliatory tariffs on $84 billion wor…
Coverage Details
Bias Distribution
- 42% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
