Overview

• On July 24, the ECB held its deposit rate at 2%, main refinancing rate at 2.15% and marginal lending rate at 2.40% after eight cuts.
• Euro-area inflation has aligned with the ECB’s 2% medium-term objective, prompting the pause.
• The Governing Council warned that exceptional uncertainty persists, especially because of global trade disputes.
• Policy decisions will be made on a meeting-by-meeting basis without a predetermined path for future rate adjustments.
• The ECB reiterated its readiness to deploy all instruments needed to secure orderly monetary transmission and price stability.