ECB\u00a0President Christine\u00a0Lagarde\u00a0confirmed during her press conference that \u201cfrom a monetary policy point of view, we are in a good place.\u201d\u00a0 However, she underlined that this is \u201cnot a fixed place\u201d and said the Bank \u201cwill do whatever is needed to make sure that we stay in a good place.\u201d<\/p>\n
\u201cThe economy has continued to grow despite the challenging global environment,\u201d the ECB said in its statement. \u201cThe robust labor market, solid private sector balance sheets and the Governing Council\u2019s past interest rate cuts remain important sources of resilience.\u201d<\/p>\n
Lagarde\u00a0noted \u201cthat some of the downside risks to the economic outlook had abated\u201d since the last policy meeting.\u00a0At the same time, however, the\u00a0ECB\u00a0warned that \u201cthe outlook is still uncertain, owing particularly to ongoing global trade disputes and geopolitical tensions.\u201d<\/p>\n
Risks remain abundant: beyond potential delayed effects from new U.S. tariffs, they include a further strengthening of the euro, as the U.S. Federal Reserve continues to lower its own rates. On Wednesday, the Fed cut rates by another quarter-point \u2014 the second consecutive reduction \u2014 citing a slowdown in job growth.<\/p>\n
Domestically, a delay to Germany\u2019s fiscal stimulus measures and France\u2019s ongoing budget crisis could also threaten to push the ECB out of its \u201cgood place.\u201d<\/p>\n
\u00a0\u201cDespite the US tariffs, despite all the various sources of uncertainty, the European economy continues to eke out some growth,\u201d Deutsche Bank\u2019s chief European economist Mark Wall said in e-mailed comments. \u201cEconomic \u2018resilience\u2019 is keeping the ECB doves in check, and the policy pause on the rails.\u201d<\/p>\n
A growing number of economists believe the central bank has reached the end of its policy easing. A recent Reuters survey showed that, while a slim majority of analysts last month expected one more rate cut before the end of 2026, nearly 60 percent now anticipate no further changes to borrowing costs in the current cycle.<\/p>\n
This article has been updated.<\/p>\n","protected":false},"excerpt":{"rendered":"ECB\u00a0President Christine\u00a0Lagarde\u00a0confirmed during her press conference that \u201cfrom a monetary policy point of view, we are in a…\n","protected":false},"author":2,"featured_media":235260,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,13930,1294,88906,13933,2923,1431,814,9131,99661,56,54,55],"class_list":["post-235259","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-christine-lagarde","tag-economy","tag-europes-economic-recovery","tag-eurozone","tag-growth","tag-inflation","tag-interest-rates","tag-monetary-policy","tag-quantitative-easing","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/235259","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=235259"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/235259\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/235260"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=235259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=235259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=235259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}