ECB Holds Steady: Inflation Outlook Unchanged
The European Central Bank (ECB) kept interest rates unchanged, noting a steady inflation outlook despite global uncertainties and currency fluctuations. ECB President Christine Lagarde highlighted a balanced economic outlook, emphasizing that future policy would remain data-dependent. Resilient domestic consumption continues to drive euro zone growth, amid easing inflation pressures.
The European Central Bank opted to maintain its current interest rate, underscoring that its inflation outlook remains largely stable. Despite global trade uncertainties and recent dollar fluctuations, the ECB sees inflation stabilizing at its 2% target over the medium term.
ECB President Christine Lagarde noted during a press conference that the current economic state is balanced, with both upside and downside risks factored into the bank's outlook. She emphasized that the monetary policy is in a 'good place' and reaffirmed its dependency on incoming data.
The ECB acknowledged that recent changes in dollar value weren't unexpected, as it had fluctuated within a range since March 2025. The euro's strength, alongside strong domestic consumption and planned fiscal expansion in Germany, is expected to support euro zone growth, reducing pressure on the ECB to alter interest rates soon.
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