ECB Holds Interest Rates Steady Amid Persistent Inflation Worries

European Central Bank President Christine Lagarde announced that the ECB will maintain current interest rates, aimed at returning inflation to a 2% medium-term target. Despite moderate economic growth, persistent inflation and heightened geopolitical tensions remain concerns. The ECB plans to take a data-driven, meeting-by-meeting approach to rate decisions.

The European Central Bank has chosen to maintain its key interest rates amid persistent worries over inflation. ECB President Christine Lagarde emphasized a data-centric approach to future monetary policy adjustments.

Economic activity showed moderate growth in Q2, and the labour market remained stable. However, services inflation continues to be elevated, with domestic price pressures persisting.

Geopolitical tensions and potential risks to global economic growth remain critical factors to monitor. The ECB's primary mission is to ensure inflation returns to its 2% target, keeping policy sufficiently restrictive for as long as needed to achieve this objective.

(With inputs from agencies.)