{"id":21766,"date":"2025-07-25T02:52:13","date_gmt":"2025-07-25T02:52:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/21766\/"},"modified":"2025-07-25T02:52:13","modified_gmt":"2025-07-25T02:52:13","slug":"ecb-holds-rates-waits-for-more-clarity-on-us-tariffs-politico","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/21766\/","title":{"rendered":"ECB holds rates, waits for more clarity on US tariffs \u2013 POLITICO"},"content":{"rendered":"

\u201cThe eurozone economy appears to be gradually regaining momentum,\u201d Cyrus de la Rubia,\u00a0chief\u00a0economist at Hamburg Commercial Bank said\u00a0in a statement accompanying the release. \u201cThe recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July.\u201d<\/p>\n

Financial markets expect the ECB to deliver one more interest rate cut before the end of the year on the back of policymakers\u2019 warnings that a strong euro combined with higher import duties could cause inflation to fall well below the ECB\u2019s 2 percent target.<\/p>\n

However, outspoken hawk Isabel Schnabel recently said that\u00a0the bar for another rate cut is \u201chigh\u201d<\/a>.<\/p>\n

The ECB\u2019s own forecast sees inflation dropping below target to 1.6 percent in 2026, but Lagarde downplayed its importance, saying that inflation will return to target in the medium term, which the Bank typically sees as two years ahead.\u00a0<\/p>\n

Analysts have taken Lagarde\u2019s words as a sign that the ECB will be very cautious in its next policy steps. \u201cTaking today\u2019s meeting at face value, the bar for yet another rate cut this year has clearly been raised,\u201d said ING economist Carsten Brzeski. Still, he warned\u00a0against ruling out a further cut as inflation and other economic data \u201ccould rather disappoint over the summer.\u201d<\/p>\n

This story has been updated.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe eurozone economy appears to be gradually regaining momentum,\u201d Cyrus de la Rubia,\u00a0chief\u00a0economist at Hamburg Commercial Bank said\u00a0in…\n","protected":false},"author":2,"featured_media":21767,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[894,456,84,4621,13930,13931,1294,13932,13933,4176,1431,9131,56,54,55],"class_list":["post-21766","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-banks","tag-bonds","tag-business","tag-central-banks","tag-christine-lagarde","tag-economic-performance","tag-economy","tag-european-monetary-union","tag-eurozone","tag-finance","tag-inflation","tag-monetary-policy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/21766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=21766"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/21766\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/21767"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=21766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=21766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=21766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}