The European Central Bank is expected to keep interest rates steady on July 24 due to stable inflation and political uncertainty. Trade tensions with the US and a stronger euro could lead to rate cuts later in the year, with September seen as a likely date for easing. Economists predict a 0.25 percentage point cut in September. The ECB is pausing after eight rate cuts and may focus on the fall meeting for further decisions. The current rates are 2.00% for the deposit facility rate, 2.15% for the main refinancing rate, and 2.40% for the marginal lending facility. ECB officials suggest that another rate cut is not imminent unless there is a significant deviation from inflation targets. The ECB is monitoring wage growth and expects inflation to average 2.0% in 2025, 1.6% in 2026, and 2.0% in 2027. The euro’s strength against the dollar may pose disinflationary risks but reflects Europe’s growth narrative. Interest rate cuts typically boost equity markets and make borrowing cheaper while reducing savings account rates. The next ECB meetings in 2025 are scheduled for September 11, October 30, and December 18.

Read more at Morningstar: ECB Rate Decision: What to Expect on July 24