ECB says environment is 'exceptionally uncertain', stays put on rates
By Alexander Bueso
Date: Thursday 24 Jul 2025
(Sharecast News) - The European Central Bank kept rates on hold on Thursday and appeared to place a high bar for any further reductions in interest rates.
In particular, the ECB stressed that inflation was at its 2.0% medium-term target and that wage growth had continued to slow.
However, there environment continued to be "exceptionally uncertain", not least as a result of trade disputes with the US and around the world, ECB chief, Christine Lagarde, explained during her post-meeting press conference.
"The ultimate net end result of inflationary or deflationary forces [from trade tariffs] cannot be determined at this time," Lagarde added.
As an example of the current complexities of making economic forecasts, Lagarde pointed out how the ECB needed to determine both the direct impact of any tariffs as well as the indirect impact from the redirecting or re-routing of trade from other countries hit by US tariffs.
Even so, for now she judged that the euro area was in a "good" place as regarded the inflation picture.
The ECB's interest rates on its deposit main refinancing operations and marginal lending facilities were kept at 2.0%, 1.5% and 2.40%, respectively.
Thursday's rate decision was unanimous and the risk assessment was "broadly shared" by all members of the governing council.
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN