Source: SFGate
“The European Central Bank left interest rates unchanged Thursday as the economy in the 21 countries that use the euro chugs past the disruption from U.S. President Donald Trump’s tariffs with growth modest, yet resilient. The bank left its benchmark deposit rate at 2%, where it has been since June. after a series of cuts from the peak of 4% starting in mid-2024. The reduced rate has been low enough to re-start mortgage lending for home sales and new construction due to reduced credit costs, boosting growth. Low unemployment is also contributing to demand for goods by consumers and helping keep the economy resilient without the stimulus of further rate cuts. As a result, the chief monetary authority for the eurozone may leave its rates unchanged into 2027, analysts say. The eurozone grew a stronger than expected 0.3% in the last three months of 2025, and may reach growth of 1.3% for all of this year, according to forecasts by Berenberg bank.” (02/05/25)
https://www.sfgate.com/news/world/article/europe-s-central-bank-maintains-interest-rate-21335244.php