The European Central Bank (ECB) kept interest rates on hold on July 24, pausing its year-long easing cycle as inflation settled at its 2 percent target and signs of resilience emerged in the euro area economy.
The deposit rate stayed at 2 percent, the main refinancing rate at 2.15 percent, and the marginal lending rate at 2.4 percent, the eurozone’s central bank said in a statement following its policy meeting.
The decision was widely expected by markets after four consecutive cuts since last summer, which brought borrowing costs down from their highest levels in more than a decade.
“Inflation is currently at the 2 percent medium-term target,” the ECB said in its statement, noting that domestic price pressures were easing and wage growth was moderating. It pledged to continue taking decisions on a “data-dependent and meeting-by-meeting” basis without pre-committing to a rate path….