ECB to keep rates steady
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The European Central Bank (ECB) announced on Thursday that it left key rates unchanged following the July policy meeting, as expected. With this decision, the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility stood at 2.15%, 2.4% and 2%, respectively.
European Central Bank policymakers are setting a high bar for an interest rate cut in September and they would need to see a significant deterioration in growth and inflation before backing further easing,
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.
Changes to Key ECB Interest Rates The ECB began its rate-cutting cycle in June 2024, paused in July, and resumed its rate changes in September for back-to-back cuts of 0.25 percentage points at ...
Goldman Sachs and BNP Paribas scrapped their forecasts for a September rate cut by the European Central Bank, now expecting no further easing this year after the ECB held rates steady.