Europe
ECB holds rates at 2% and upgrades growth forecasts as trade fears fade
The central bank revised 2025 growth to 1.4% and signalled a long pause, but Governing Council members are split on whether the next move is up or down.
Person
Isabel Schnabel
Member of the Executive Board, European Central Bank
What we have reported
- Said last week she believes the next rate move is likely to be an increase.
- Has openly endorsed the market view that the ECB's next rate move will be a hike, highlighting governing council divisions.
- Head of market operations reportedly eyeing the presidency, but would require a legal workaround to serve a second board term.
Coverage
Business
European central banks diverge as ECB holds, Bank of England cuts, Nordic banks pause
The ECB kept rates steady while flagging internal divisions over the next move, Norway and Sweden paused their easing cycles, and the Bank of England delivered a quarter-point cut to 3.75% as UK inflation eased.
Europe
Spain and Germany position for ECB presidency as Lagrace era nears end
With Christine Lagarde due to step down in 2027, Madrid and Berlin, the eurozone's fourth and largest economies, are quietly manoeuvring for the first time to lead the central bank, while a Dutch dark horse lurks.
Europe
Lagarde faces French fiscal questions at ECB rate decision
The ECB president must address her homeland's mounting debt crisis while keeping deposit rates at 2 percent and avoiding any signal of market intervention.
Europe
ECB holds rates at 2% as trade talks with Washington drag on
The deposit facility rate stays unchanged after seven consecutive cuts, with Lagarde signalling patience until the EU, US tariff picture clears. Markets still price one more move this year but the bar has risen.
Business
Lagarde sees opening for euro as dollar reserve dominance wavers
ECB president tells Berlin audience that geopolitical shifts create a chance for the euro to expand its 20% share of global reserves, but analysts remain split on whether Europe can deliver the deeper capital markets and political unity required.
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