ECB holds rates as Lagarde stresses heightened uncertainty
Summary
The European Central Bank holds interest rates steady amidst geopolitical uncertainty, with improved growth forecasts attributed partly to AI-driven investments.
Key Points
- The European Central Bank kept interest rates unchanged for the fourth consecutive meeting due to heightened geopolitical uncertainty.
- ECB President Christine Lagarde stated that uncertainty prevents the bank from issuing forward guidance on future rate movements.
- Growth forecasts for the Eurozone were raised for 2026 and 2027, partly due to expected increased investment driven by AI.
- Inflation is projected to remain close to but just below the ECB's two percent target by 2026 and 2027.
