ECB Holds Rates Steady Amid Economic Uncertainty, Inflation Stable at 2%
The European Central Bank maintained its key interest rates unchanged for the third consecutive meeting, leaving the main refinancing rate at 2.15%, the marginal lending facility at 2.4%, and the deposit facility at 2.0%. President Christine Lagarde emphasized the eurozone's resilience but cautioned against geopolitical risks and trade disputes that could destabilize the region's economic footing.
Inflation remains anchored at the ECB's 2% target, with little near-term deviation expected. Lagarde noted divergent forces at play—domestic demand shows strength while external demand falters under global headwinds. The euro's appreciation adds further pressure, potentially dampening price stability.
The ECB's stance signals a holding pattern, prioritizing vigilance over action. Markets will watch for shifts in rhetoric as trade tensions and currency volatility test the bank's resolve.
