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Lagarde says ECB will keep rates steady after July decision

After the ECB left key rates unchanged, the main refinancing rate stayed at 2.4% and EUR/USD slipped 0.23% to 1.1385.

Reported · Written up by our desk · Central Banks

Christine Lagarde, European Central Bank (ECB) president, outlined the rationale for the ECB’s decision to hold key policy rates unchanged at its July meeting and addressed questions from the press, according to FXStreet.

The ECB kept the interest rate on the main refinancing operations at 2.4%, the marginal lending facility at 2.65%, and the deposit facility at 2.25%, matching expectations for a steady rate path. FXStreet also reported that EUR/USD remained under modest bearish pressure, last seen down 0.23% on the day at 1.1385.

FXStreet noted that traders will look to the ECB press conference for fresh signals on the timing of future rate hikes, especially since, unlike June, the decision is not accompanied by updated staff economic projections. The outlet also pointed out that the ECB previously hiked rates by 25 basis points in June in response to an energy shock linked to the Middle East war.

FXStreet further highlighted that earlier ECB communications emphasized staying neutral, neither indicating the decision was the start of a sequence of hikes nor that it was a one off move, leaving room for policymakers to adjust based on incoming data.

Latest closeEUR/USD 1.141 ▼0.0%

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