US EditionEurope's central bank maintains interest rate with economic growth resilient
The European Central Bank kept rates steady at 2% for the fifth meeting as inflation fell to 1.7%, with resilience attributed to low unemployment and solid private sector finances.
- On Thursday, the European Central Bank held interest rates steady, keeping the deposit rate at 2% for the fifth meeting amid global tensions and euro strength.
- With inflation risks near the 2% target, policymakers judged rising oil and gas prices partly offset the risk of inflation slipping below 2%, supporting steady rates.
- Chief Economist Philip Lane said forecasts imply no near-term rate debate, Christine Lagarde will speak at 2:45 p.m. in Frankfurt, and Austria's Martin Kocher urged `full optionality`.
- Following the decision, the euro strengthened as the dollar weakened, briefly reaching its highest level since 2021 while analysts and markets expect rates to stay through the end of next year.
- Amid pressure on global central banks, officials signalled restraint as policymakers digest attacks on the Federal Reserve, Venezuela's president's ouster, and U.S. tariff threats, while Bank of America economist Evelyn Herrmann said the ECB likely won't strongly react to exchange rates or energy costs.
137 Articles
137 Articles
Watauga Democrat
ECB warns of stronger euro impact, holds rates
The European Central Bank warned Thursday a stronger euro could push inflation down too far after recent gains in the single currency, but sought to downplay any immediate threat to the eurozone economy.
The Star Kuala Lumpur
china.org.cn2nd LD Writethru: ECB holds interest rates steady
FRANKFURT, Feb. 5 (Xinhua) -- The European Central Bank (ECB) on Thursday decided to leave key interest rates unchanged at its first monetary policy meeting of 2026, marking the fifth consecutive hold since July 2025. Read full story
The central bank complies with market forecasts and prolongs the pause that began after the end of the cut-off cycle in 2025.
As widely expected by the markets, the European Central Bank (ECB) decided to maintain interest rates at 2% by stating that its updated assessment reconfirms that inflation should stabilize at its target of 2% in the medium term. In its communiqué, following the monetary policy meeting, the board noted that “the economy continues to show resilience in a difficult global environment.” In this regard, it argued that low unemployment, robust privat…
Until the middle of last year, the key interest rate in the euro area falls regularly. However, for some time now, the ECB's interest rate has been stagnating. Even now, there are two reasons for this. The European Central Bank (ECB) started with a further pause in interest rates in the year.The Governing Council of the ECB, headed by President Christine Lagarde, left the deposit rate at 2.0 percent. Through it, the central bank steers monetary …
The institution maintains its interest rates at 2%, now unchanged since June 2025.
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