"The European Central Bank (ECB) held its key interest rates unchanged following the February meeting of the Governing Council, in line with Cebr projections. This marks the fifth consecutive hold, despite a below-target inflation reading of 1.7% in January, the lowest level since 2021. The decision to hold rates also comes despite a recent Euro rally against the dollar, which is expected to add disinflationary pressure through cheaper imports and weigh on growth by making the bloc's exports more expensive."
"The decision to hold rates also comes despite a recent Euro rally against the dollar, which is expected to add disinflationary pressure through cheaper imports and weigh on growth by making the bloc's exports more expensive. Even so, the Eurozone continues to show resilience amid tariffs and geopolitical uncertainty. Today's decision reflects a cautious stance by the ECB given upside risks to inflation amidst stronger domestic consumption and impending fiscal easing. Nevertheless, Cebr predicts that rates will be held until at least the second half of 2026."
ECB held its key interest rates unchanged after the February Governing Council meeting, marking the fifth consecutive hold. Inflation stood at 1.7% in January, below target and the lowest reading since 2021. A recent Euro rally against the dollar is expected to add disinflationary pressure through cheaper imports and to weigh on growth by making the bloc's exports more expensive. The Eurozone continues to show resilience amid tariffs and geopolitical uncertainty. The ECB adopted a cautious stance because of upside inflation risks from stronger domestic consumption and impending fiscal easing. Cebr projects rates will remain on hold until at least the second half of 2026.
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