The European Central Bank left its key interest rate benchmark unchanged Thursday as its rate-setting council and President Christine Lagarde take their time to make sure stubborn inflation is firmly under control before lowering rates again.
The decision leaves the deposit rate at 3.75%, where it has stood after a single rate at the previous meeting on June 6.
The ECB's stance for now resembles that that of the U.S. Federal Reserve, which is expected to hold off lowering rates at its next meeting July 30-31, though the Fed appears closer to cutting rates after that than is the ECB. Inflation in the eurozone has fallen from a peak of 11.6% in October 2022 to 2.5% in June, slowly approaching the ECB's goal of 2% considered best for the economy. But the last mile has been tough. Inflation figure has been stuck between 2% and 3% for months.
The anti-inflation campaign has killed off a years-long rally in eurozone house prices, as mortgage costs weigh on home sales. Several eurozone countries including Spain and Ireland have large numbers of people with adjustable-rate mortgages who have faced sticker shock when looking at their monthly payments. Meanwhile financing costs have risen for renewable energy projects such as wind turbines, a key part of the EU's effort to reduce greenhouse gas emissions.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
European Central Bank could take action against firms not meeting climate goalsThe ECB said ‘remedial actions will be assessed’ on a case-by-case basis if deviations from the desired trajectory are identified
Read more »
European Central Bank keeps rates unchanged, offers no guidance on next moveThe ECB came out with a balanced message following Thursday’s meeting, arguing that corporate profits were absorbing some price pressures but that risks remained
Read more »
Can France count on a European Central Bank rescue if election upsets markets?ECB policy-makers remain in no rush to act, but the risk of a National Rally-led government after Sunday’s second round is far from averted
Read more »
World Bank Cuts Thai Growth Outlook, Backs Central Bank in Keeping Rate SteadyThe World Bank trimmed its growth forecast for Thailand, citing uncertainties over the government’s $13.5 billion stimulus plan, but backed the central bank’s stance in keeping the policy rate steady.
Read more »
ECB, Canada join G10 central bank easing push in JuneThe European Central Bank and the Bank of Canada in June joined the ranks of big central banks easing policy, while emerging markets ploughed ahead in their ...
Read more »
An analyst ordered 75 Chipotle burrito bowls to test portion sizesWells Fargo analyst Zachary Fadem went out to Chipotle to do some investigative work. Fadem and his team ordered and weighed 75 burrito bowls with white rice, black beans, chicken, pico de gallo, cheese and lettuce across eight Chipotle locations in New York City.
Read more »