European Central Bank holds key interest rates steady

24 Jul '25

1 min read

European Central Bank holds key interest rates steady

Pic: Todamo / Shutterstock.com

Insights

ECB has kept its key interest rates unchanged, with the deposit rate at 2.00 per cent.
Inflation has reached the 2 per cent target, and domestic price pressures are easing.
While the eurozone economy remains resilient, the ECB noted heightened uncertainty, especially from trade tensions.
The central bank will continue a data-dependent approach without committing to a fixed rate path.

The European Central Bank (ECB) has opted to maintain its key interest rates, leaving the deposit facility at 2.00 per cent, the main refinancing operations rate at 2.15 per cent, and the marginal lending facility at 2.40 per cent. The decision reflects the Governing Council’s view that inflation remains aligned with its medium-term target of 2 per cent.

Recent economic data has broadly confirmed its earlier projections. Domestic inflationary pressures are gradually easing, supported by a slowdown in wage growth. The eurozone economy has also shown resilience, bolstered by the effect of previous rate cuts, the Governing Council said in a statement.

However, policymakers cautioned that the global environment remains “exceptionally uncertain”, particularly due to ongoing trade disputes. The Governing Council reiterated its commitment to a data-driven, meeting-by-meeting approach and emphasised that no predetermined path for future interest rates is being set.

The ECB reaffirmed its determination to ensure inflation stabilises at the 2 per cent target over the medium term, with monetary policy decisions continuing to rely on economic and financial data, underlying inflation trends, and policy transmission dynamics.

Fibre2Fashion News Desk (KD)

More Textiles News - Europe...