Rabobank’s Teeuwe Mevissen discusses the European Central Bank’s recent decision to maintain interest rates unchanged at 2% for the fifth consecutive meeting. The ECB’s tone remains constructive, citing low unemployment and strong private-sector balance sheets, but it also warns of persistent geopolitical risks. The report highlights the recent EUR/USD rally and President Lagarde’s acknowledgment that a stronger euro could contribute to lower inflation.
ECB maintains steady rates
“The ECB left rates unchanged yesterday, keeping the deposit rate at 2% for the fifth consecutive meeting. No forward guidance was provided, and the Governing Council judged that risks remain broadly balanced.”
“The ECB struck a generally constructive tone, citing low unemployment, strong private-sector balance sheets, and ongoing investment in defence and infrastructure.”
“As expected, questions arose about the recent EUR/USD rally, which briefly pushed the pair to 1.2044 eight days ago, yet President Lagarde remained calm despite acknowledging that a stronger euro could contribute to lower inflation.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/eur-ecb-holds-rates-steady-rabobank-202602061013
