Today, the European Central Bank (ECB) decided to leave its key interest rate unchanged. The deposit rate thus remains at 2.00%. The main refinancing rate is 2.15%, and the marginal lending rate is 2.40%.
Florian Heider, Scientific Director of the Leibniz Institute for Financial Research SAFE, comments:
"The decision to maintain the interest rate pause is correct. The European economy suffers from US tariff policy and the geopolitical situation. Inflation, however, is currently very close to the ECB's inflation target of 2%. As the consequences of the conflicts are difficult to predict, the ECB’s mandate remains price stability, and the effect of the measures taken so far is still unclear, the ECB should retain room for maneuver.
The inflation data does not currently necessitate action, and economic problems in Europe are more structural in nature. In view of the political uncertainty surrounding the US Federal Reserve and its upcoming rate decision, the ECB’s role as a reliable actor gains additional importance. It should now project stability and reliability.”
