ECB Holds Deposit Rate at 2.25% as Middle East Conflict Risks Mount
Updated
Updated · Bloomberg · Jul 23
ECB Holds Deposit Rate at 2.25% as Middle East Conflict Risks Mount
3 articles · Updated · Bloomberg · Jul 23
Summary
The ECB is set to leave its deposit rate unchanged at 2.25% on Thursday, pausing after last month’s increase rather than delivering a second straight hike.
Renewed fighting in the Middle East — and a re-escalation in the US-Iran conflict — is driving the wait, as policymakers assess potential fallout for growth, energy prices and inflation.
Neither traders nor analysts expect a move, reinforcing the view that officials see the current 2.25% setting as an appropriate level for now.
The decision leaves President Christine Lagarde focused on risk assessment over fresh tightening, with geopolitics now shaping the near-term policy outlook.