Christine Lagarde, president of the ECB, gestures at the press conference of the European Central Bank in Frankfurt on Thursday, September 11, 2025. Photo: Getty
Q: Given the political turmoil in France and the uncertainty caused by US president Donald Trump’s tariffs, why did the European Central Bank (ECB) decide not to cut interest rates again?
A: The governing council, at its meeting in Frankfurt, kept the main deposit rate at 2pc. This was the second meeting in a row where it left interest rates unchanged, ending a long series of cuts that went all the way back to June 2024. The ECB had reduced rates eight times in a year, bringing them down from a peak of 4pc.