ECB maintains cautious stance, leaves interest rate unchanged in October

The European Central Bank has held its key interest rates unchanged for the third consecutive ￰1￱ main refinancing rate has been held at 2.15%, the marginal lending facility at 2.4%, and the deposit facility at 2.0%. Christine Lagarde, President of the ECB, said that the eurozone economy is in a good place, but they are navigating a period of ￰2￱ affirmed that the central bank will do whatever it takes to maintain a good position despite the ongoing global geopolitical ￰3￱ warns of an uncertain outlook The ECB’s October policy statement noted that inflation has stabilized around the medium-term target of 2% and is projected to remain unchanged in the near ￰4￱ policy report highlighted risks emanating from global trade disputes, geopolitical tensions, and a stronger euro, which the bank believes could weigh further on ￰5￱ remains close to our 2% target and we will do what is needed to make sure that we stay in a good place, said President @Lagarde as the Governing Council decided to keep the three key interest rates ￰6￱ the press conference ￰0￱ ￰7￱ — European Central Bank (@ecb) October 30, 2025 Lagarde acknowledged that there is uneven underlying momentum behind the eurozone economy growth, including the divergence between domestic resilience and weak external ￰8￱ and a sluggish global manufacturing industry have persisted throughout the year, leading to uneven ￰9￱ to the ECB President, manufacturing has been held back by tariff tensions from the U.

S., and the ECB expects consumption to continue driving the bloc’s moderate ￰10￱ noted that the labor market has begun to moderate, with positive wage indicators suggesting slower growth for ￰11￱ ECB revealed that household savings remain unusually high, which prevents domestic ￰12￱ highlighted that corporates are now moving towards AI investments , which suggests that technology-driven productivity gains may help offset lagging sectors in the medium ￰13￱ euro dropped near 0.4% on the daily chart against the ￰14￱ following the announcement and was trading at around 1.1562 at the time of ￰15￱ drop was attributed to a dovish interpretation of Lagarde’s remarks by ￰16￱ euro drops by 0.4% following a suspected dovish stance by traders ING analysts, on the other hand, noted that the ECB’s stance reflects confidence that its rate-cutting cycle is over, based on composite PMI data rising to 52.2, representing the highest since ￰17￱ analyst revealed that these suggest the eurozone economy may be regaining some ￰18￱ ECB President cautioned that inflation remains vulnerable to shifts in the global economy, citing a volatile trade environment and the potential for a stronger euro to further suppress price ￰19￱ also mentioned the medium-term effects of rising defense spending, noting that it could add inflationary pressures later ￰20￱ to Largarde, the outlook of inflation is more uncertain than usual, adding that the ECB will continue to make decisions meeting by meeting and based on incoming ￰21￱ ECB reiterated that its Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) portfolios are declining at a measured and predictable pace as the Eurosystem stops reinvesting in maturing securities, marking a step towards balance sheet ￰22￱ ECB’s rate announcement follows the ￰23￱ Reserve rate meeting held ￰24￱ noted that the Federal Reserve lowered its rate by 25 basis points to 3.75% from the previous 4%, marking a second consecutive rate cut in ￰25￱ to the report, the FOMC noted that economic activity across the ￰26￱ growing at a moderate ￰27￱ added that job gains have slowed down and unemployment has ticked up despite being relatively low at the ￰28￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program