European Central Bank holds rates as tariffs keep policymakers on edge
On June 30, 2025, Portugal, on June 30, 2025 at the 2025 European Central Bank forum, the European Central Bank Christine Lagarde President.
Horacio Villalobos | Corbis News | Getty Images
On Thursday, the European Central Bank kept its interest rates constant in the midst of great economic uncertainty, as a trade agreement with the United States tried to negotiate a trade agreement before the end of the month.
The ECB reduced interest rates in each of the four meetings of this year, and the key deposit facility received its installation in January from 3% to 2% in June. Last year, the rates reduced a record of 4%.
“The environment remains extraordinarily uncertain because of trade disputes,” ECB said in a statement. He said.
Annual inflation in the Euro zone reached 2% target of the central bank last month, while traders were largely waiting for a large -scale waiting in July due to geopolitical volatility. USA is the EU largest The bilateral trade and investment partner and 27 -member block exported 503 billion euros ($ 590 billion) to the states last year.
As of Thursday, the future of this trade relationship remained in the air, and one possibility is the 15% basic tariff rate in all EU imports to the US, along with the EU’s retaliation measures.
ECB officials suggest that inflation has been done for a while, because the rates are neither encouraging nor limiting the growth of the proportions. ECB President Christine Lagarde said that in late April, the Dysflation process was “approaching to complete” in late April.
ECB Chief economist Philip Lane, CNBC at the beginning of this month, “the last cycle was made, inflation,” he said, but policy makers will remain awake for any medium -term appearance, he said.
Barclays Private Bank’s chief market strategist Julien Lafargue said that although the questions about the tariff rates of the ECB remain unanswered before the July meeting announcement, the Central Bank will wait for the updated personnel growth and inflation forecasts to be put on the market before making more movement.
Lafargue, instead of investors, as imports as cheaper as a deflationist effect, the last power in the euro may focus on whether it is related to the Central Bank, he added.
This is a last -minute news story and will be updated soon.
