The European Central Bank is expected to hold rates steady Thursday amid easing inflation and weaker growth, omitting updated economic projections.
The European Central Bank is set to maintain its main refinancing rate at 2.4% and the deposit facility rate at 2.25% during its Thursday announcement. The decision follows a 25 basis points hike in June, driven by energy price shocks linked to Middle East tensions.
Inflation has since softened, with the Eurozone’s core HICP rising 0.2% month-on-month in June, down from 0.3% in May. Policymakers previously signaled a neutral stance, leaving future moves data-dependent amid geopolitical uncertainties.
Traders will focus on ECB President Christine Lagarde’s press conference for clues on rate trajectory, with the Euro likely to react to any shifts in guidance.