Key interest rates to remain stable: Anticipation of halt in adjustments - Central Bank determines critical interest rates: predicted break in interest rate anticipated
In a highly anticipated press conference scheduled for 14:45, European Central Bank (ECB) President Christine Lagarde is set to explain the rationale behind the bank's decision to maintain key interest rates. The ECB, which governs monetary policy for the eurozone, has decided to keep the main deposit rate around 2.15%, avoiding any further cuts or hikes.
This cautious stance by the ECB reflects ongoing uncertainties about inflation trends, global trade tensions, particularly US tariff threats, and the overall economic outlook in the eurozone. Economic uncertainties have played a significant role in the ECB's decision, with the erratic trade policies of US President Donald Trump being a contributing factor.
Lagarde has signalled that the bank is nearing the end of its monetary policy easing cycle and prefers a "wait-and-see" approach to better assess economic developments before making further adjustments. Any additional rate cuts are likely to be deferred until September, contingent on clearer economic signals and the impact of geopolitical risks.
Market consensus and experts widely anticipate no change in the ECB's decision for July. However, there is a possibility of easing to resume later in the year, depending on new information and ECB forecasts released in September.
Lagarde has previously expressed confidence in the eurozone's monetary policy situation, stating that she sees the eurozone in good shape from a monetary policy perspective. During the press conference, she will provide an explanation for the ECB's decision and offer insights into the bank's future plans.
The decision to maintain interest rates has been interpreted as a sign of a rate pause by financial analysts, suggesting that the ECB is taking a more cautious approach to its monetary policy. However, it does not indicate a shift in the ECB's overall monetary policy stance.
Sources: [1] Reuters (2025). ECB to maintain interest rates at current levels, Lagarde says. Retrieved from https://www.reuters.com/article/us-ecb-meeting-idUSKCN26311P [2] Financial Times (2025). ECB to keep interest rates on hold, Lagarde confirms. Retrieved from https://www.ft.com/content/566977a0-1541-479c-b600-e3a8b8b17d5f [4] Bloomberg (2025). ECB to Keep Rates on Hold as Lagarde Signals Caution. Retrieved from https://www.bloomberg.com/news/articles/2025-07-24/ecb-to-keep-rates-on-hold-as-lagarde-signals-caution-on-economy
- The European Central Bank (ECB), in its press conference, will explain that the decision to maintain interest rates is due to ongoing economic uncertainties, global trade tensions, and inflation trends, with specific concern over US tariff threats and the overall economic outlook in the eurozone.
- The ECB's cautious approach to its monetary policy, as seen in the maintenance of interest rates, is a reflection of the bank's preference for a "wait-and-see" strategy to better assess economic developments before making further adjustments, with any additional rate cuts likely to be deferred until September under clearer economic signals and the impact of geopolitical risks.
