European Central Bank keeps rates on hold
Digest more
Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview.
In notes dated July 24, Goldman said it no longer expects the ECB to deliver a rate cut this year, while J.P. Morgan has pushed its rate-cut forecast to October from September previously. On Thursday, the ECB held policy rates unchanged at 2% after having cut interest rates eight times since June 2024.
Regional shares ended the Thursday session higher, as investors focused on U.S.-EU trade talks, the European Central Bank's widely anticipated interest rate hold and a flurry of corporate earnings.
The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts.
FTSE 100 snaps six-day winning streak amid a global equity sell-off, while the pound slides, with the euro at its strongest since April. June retail sales rebounded thanks to warm whether, but not as much as economists had expected.
Explore more
The European Central Bank has made another outsized interest rate hike aimed at squelching out-of-control inflation, moving at the fastest pace in the euro currency's history.
The European Central Bank, based in Frankfurt, has telegraphed its intention to lower its key interest rate to 3.75 percent from 4 percent.
European Central Bank Executive Board member Piero Cipollone said the economy is sending “conflicting signals” as officials wait for more clarity before taking a fresh view on whether interest rates need to be lowered any further.