(VOVWORLD) - The European Central Bank (ECB) on Thursday kept policy rates unchanged for the fifth consecutive meeting. Its key interest rate has been at 2% since June 2025.
Explaining the decision, the ECB said the eurozone economy remains resilient despite growing concerns over the impact of a stronger euro.
The Bank noted that eurozone growth continues to be supported by low unemployment, strong private-sector balance sheets, the gradual rollout of public spending on defense and infrastructure, and the lingering positive effects of previous interest rate cuts.
The ECB said inflation is expected to stabilize around the Bank’s target over the medium term. On the same day, the Bank of England (BoE) decided to keep its benchmark interest rate unchanged at 3.75%, while lowering its growth forecasts for the UK economy in 2026 and 2027. The BoE now expects GDP growth to reach 0.9% in 2026 and 1.5% in 2027, down from earlier projections of 1.25% and 1.6%.