European Central Bank leaves interest rates unchanged

Due to continued high inflation, the ECB is keeping interest rates at the same level as the previous month. This is central bank statement - and so Bitcoin responds.

The European Central Bank (ECB) is keeping interest rates unchanged at 4.25 percent. The ECB announced this in a press release today. With this, policymakers from Frankfurt am Main now seem to be going back into observation mode after the recent rate cut in June.

Maintaining the current interest rate level was expected in advance by many analysts and experts. ECB President Christine Lagarde had previously described a further interest rate cut as "unlikely" labeled.

The press statement now reads, "Based on inflation concerns in Europe, we consider it appropriate to maintain the current degree of monetary tightening for the time being."

Inflation remained at 2.5 percent the day before, as it did the month before, coming no closer to the ECB's stated goal of 2 percent. From an equity markets perspective, however, what matters is not so much today's actual decision, but rather whether the ECB sticks to its plan of two more interest rate cuts in 2024. An answer is expected from Lagarde during the press conference later.

According to a Reuters survey nearly two-thirds of U.S. economists expect a further rate cut by the ECB starting in September.